- India is not selling its US Treasury holdings, RBI Governor Sanjay Malhotra stated
- Forex reserves decline caused fluctuations in US Treasury holdings, not deliberate sales
- India's long-term US debt holdings hit a five-year low of $174 billion in November
India is not selling its US Treasury holdings, Reserve Bank of India Governor Sanjay Malhotra said at a post-policy press conference on Friday.
“Our forex reserves had come down, so as a result of that” all holdings change, said Malhotra. “Those are fluctuations on our day-to-day or a week-to-week basis that we give out but there is no reduction in our holdings of US treasuries.”
The country's holdings of long-term US debt had dropped to a five-year low of $174 billion as of November, down 26% from a 2023 peak, according to US government data made available in January, as the RBI pushed to support a weakening rupee.
In October, the central bank pledged to support the local currency to snuff out speculative attacks. India's forex reserves fell by $10.5 billion during the month, according to data compiled by Bloomberg. The draw down continued in November, with the forex stockpile falling further to $686.2 billion before rising to a record high of $723.8 billion last week.
India's sale of treasuries followed a broader shift by some major economies out of the world's biggest bond market as concerns rose around US exceptionalism.
Malhotra's latest comments come in the backdrop of US President Donald Trump's decision to lower tariffs on India to 18% from 50%.
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