Dutch International: Foreign Central Banks are reducing their holdings of US Treasuries and dropping their exposure to the dollar.

On August 22, Jin10 reported that Chris Turner of the Dutch International Group stated in a report that the latest custody data from the Fed shows that foreign central banks are continuing to reduce their holdings of U.S. Treasuries and may lower their dollar exposure in their forex reserves. He pointed out that the impact on the U.S. Treasury market may be limited, as the U.S. private sector is catching a falling knife for the foreign official dumping, but the impact on the dollar “may still be negative.” Data shows that as of Wednesday, the size of U.S. Treasuries held by the Fed on behalf of foreign officials and international accounts was $2.83 trillion, down from $2.86 trillion the previous week, a reduction of about $100 billion since early April.