India's investment in bond market / US government securities hit record high of $ 177.5 billion in February

Central banks around the world consider the dollar and US securities to be the preferred investment, despite having lower returns. Central banks follow the SLR (Safety, Liquidity and Return) rule in investment. Like other counterpart central banks, RBI takes safety first in its investments, then liquidity and finally returns.

·      Indian investment in US securities increased by $ 13 billion in 1 month and $ 32.2 billion in 1 year

·      India is the 13th largest investor in US government securities, Japan is number one

New Delhi. India's investment in US government securities increased by $ 13 billion in just one month, reaching a record level of $ 177.5 billion at the end of February 2020. In the last one year i.e., from February 2019 to February 2020, India's investment in US securities has increased by $ 33.2 billion. According to the latest data from the US Finance Ministry, India's investment in US securities has increased the most during a month from January to February. India has been steadily increasing its investment in US securities since November last year. In November 2019, this investment was $ 159.2 billion.

 



India is the 13th largest investor in US government securities

According to the US government data, Japan has the highest investment of US $ 1,268 billion in US securities. China ranks second with an investment of $ 1,092 billion. The UK ranks third with $ 403.2 billion. India is the 13th largest investor in US government securities. India's investment stood at $ 164.3 billion at the end of January. That too was the highest level for India till that time. India's investment stood at $ 162 billion in December. These securities are purchased by the Reserve Bank of India (RBI). The US Ministry of Finance releases data on investments made in US securities by various countries.

 



List of largest investors of US government securities

1. Japanese: $ 1,268 billion



2. China: 1,092 billion dollars



3. UK: $ 403.2 billion



4. Brazil: $ 285.9 billion



5. Ireland: $ 282.7 billion



6. Luxembourg: $ 260.8 billion


7. Hong Kong: $ 249.8 billion



8. Switzerland: $ 243.7 billion



9. Cayman Islands: $ 219.4 billion



10. Belgium: $ 218 billion


11. Taiwan: $ 201.9 billion


12. Saudi Arabia: $ 184.4 billion





Central banks around the world consider dollar and US securities as preferred investments

Central banks consider dollar and US government securities as preferred investment instruments. However, the returns are quite low. Central banks of other countries, including RBI, follow the SLR (Safety, Liquidity and Return) rule while deciding investment. Like other equivalent central banks, RBI also has first priority safety, second priority liquidity and third priority returns.