China has recently made a significant move in its financial strategy by selling over $74 billion in US Treasuries, as reported by the Treasury Department. This action has caused China’s Treasuries holdings to decrease from $849 billion to $775 billion between the second quarters of 2023 and 2024. As a result, China’s current holdings are now at their lowest level since 2009.

In addition to China, other countries have also let go of small amounts of their Treasuries holdings. India sold $1.4 billion, Brazil unloaded $1.2 billion, and Saudi Arabia shed $0.3 billion in the last quarter.

These new figures coincide with Russia’s Foreign Minister, Sergei Lavrov, revealing that Russia and China have significantly reduced their use of the US dollar in their mutual trade. According to Lavrov, more than 90% of settlements between the two countries are now conducted in their own national currencies. Despite Western countries’ persistent attempts to hinder this economic cooperation, it continues to accelerate, as reported by Bloomberg.

Last year, Lavrov emphasized that the Commonwealth of Independent States (CIS) has experienced substantial growth in trade flows without complying with US demands. He stated, “We are starting to see a flight from the dollar. So far, it is not all that swift, but it is sure to accelerate. In fact, this trend is irreversible.” Lavrov believes that the US has jeopardized its dominant role in managing global financial flows and the world economy as a whole due to its actions.

Despite facing threats from the US and the European Union, CIS trade flows have increased by more than six percent, surpassing $100 billion. Lavrov, who has been in his position since 2004, revealed that CIS countries are actively working on further agreements to expand their economic interaction.

It is evident that China’s decision to sell US Treasuries, combined with Russia and China’s reduced reliance on the US dollar, signifies a shift in the global financial landscape. As countries continue to seek alternative methods of conducting trade, the impact on the US dollar’s dominant role may become more pronounced in the future.