Top Countries Holding U.S. Debt (2024)

The United States borrows money by issuing Treasury securities, such as Treasury bills, notes, and bonds, to investors around the world. These instruments are considered among the safest investments globally, making them attractive to foreign governments and institutions seeking stable returns.

Foreign countries purchase U.S. debt as a way to:

  • Stabilize their own currencies
  • Maintain trade balances
  • Invest foreign exchange reserves
  • Diversify their investment portfolios

Let’s explore which countries are the largest holders of U.S. debt as of the latest data.

Why Foreign Countries Buy U.S. Debt

Countries invest in U.S. Treasury securities for several strategic reasons:

  • Safe investment: U.S. debt is backed by the full faith and credit of the U.S. government.
  • Liquidity: U.S. Treasuries are among the most easily tradable financial instruments.
  • Trade surplus management: Countries with trade surpluses (like China and Japan) reinvest U.S. dollars by purchasing Treasuries.
  • Currency valuation: Helps stabilize their own currencies in foreign exchange markets.

Top Foreign Holders of U.S. Debt

Table: Countries Holding the Most U.S. Debt (in USD Billions)

Rank Country Amount Held (USD Billion)
1 Japan $1,000
2 China $759
3 United Kingdom $723
4 Luxembourg $424
5 Cayman Islands $419
6 Canada $379
7 Belgium $375
8 Ireland $336
9 France $332
10 Switzerland $289
11 Taiwan $282
12 Hong Kong $255
13 Singapore $249
14 India $219
15 Brazil $202
16 Norway $158
17 Saudi Arabia $138
18 South Korea $125
19 Mexico $103
20 Germany $97

Key Highlights

1. Japan – $1 Trillion

Japan is the largest foreign holder of U.S. debt. With a consistent trade surplus and large foreign reserves, Japan uses Treasuries as a stable investment.

2. China – $759 Billion

Once the top holder, China has gradually reduced its holdings due to geopolitical tensions and efforts to diversify its reserve assets.

3. United Kingdom – $723 Billion

The UK has increased its holdings through private and institutional investments, especially from London’s financial sector.

4. Luxembourg & Cayman Islands – Tax Havens

These small nations are major holders due to investment funds and financial intermediaries headquartered there.

5. India – $219 Billion

India’s growing forex reserves and rising global financial influence have led to an increase in U.S. debt holdings.

Why This Data Matters

Knowing which countries own U.S. debt helps in understanding:

  • Global financial interdependence
  • How geopolitical risks (e.g., U.S.–China tensions) can impact markets
  • The influence of foreign capital flows on U.S. monetary policy
Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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