Foreign central banks have reduced their holdings of US Treasury bonds to the lowest level since 2012

BlockBeats News, April 1st, according to the Financial Times, in order to support its economy and currency during the Iran war, foreign central banks have reduced their holdings of US Treasury bonds to the lowest level since 2012.

Since February 25th, the value of Treasury bonds held by official institutions in custody at the Federal Reserve Bank of New York has decreased by $82 billion. Some central banks have intervened in the foreign exchange market to support their domestic currency. Such interventions usually involve selling dollars to address the crisis. Since February 27th, the Central Bank of Turkey alone has sold $22 billion worth of foreign government bonds.

Analysis indicates that the supply shock is putting tremendous pressure on global central banks.