Saudi Arabia has been investing billions of dollars in order to boost its holdings of US Treasury bonds ahead of President Donald Trump’s visit to the kingdom.
Saudi holdings of US Treasury bonds were at $89.4 billion during September of last year but it climbed up to $114.4 billion in March this year, according to the US Treasury Department.
During Trump’s visit, the officials of two countries are also scheduled to hold economic talks at which Riyadh aims to gain investment and technology from the US.
The Saudi plan of increasing its holdings of US Treasury bonds is striking since Riyadh was forced to liquidate many of its other overseas assets over the past year to cover a budget deficit at home as a result of low oil prices.
“Investment policy is based on financial returns, not political expediency – the Saudis require diversified and liquid assets. But they clearly see value in the US economy and investments in the US,” John Sfakianakis,…