You Won’t Guess How BRICS Dumped $144.6B into US Treasuries!

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In the grand tapestry of our era, in the same season when the snow blankets Pavlovsk and the hearths of the Russian nobility crackle with conversation, three members of the BRICS fraternity-Brazil, Russia, India, China, and South Africa-have orchestrated a diversion worthy of examination. They have flung, as if dislodging a great stone from a long‑carried sarcophagus, tens of billions of dollars away from the gilded coffers of the United States.

According to the meticulous records of the U.S. Treasury International Capital System, the vast empire of China, a nation that has wrestled a once slow‑moving lamppost of a power into a bursting lantern of industry, has withdrawn a staggering $75.5 billion in US treasuries between December 2024 and December 2025. This represents a softer decline, a modest 10́ percent, a slight concession from its earlier pilgrimage to the Americas.

India’s descent is, on the other hand, a testament to the patriot’s quiet stoic: its treasury holdings slumped by $36.2 billion in the ensuing twelve months-a bruising 18 percent year‑over‑year dip. The space between the palm of its purse and the before‑handed glow of fortune widened.

Brazil, eyes gleaming with the hope of a summer in a distant land, cut its holdings by $32.9 billion, a substantial 16 percent reduction. The country, once only a sweet fainting child in the great world’s family, now seems to hold its own fortune differently.

The newly updated figures arrive as ING, the thirtieth‑fifth largest bank in the world by total assets-a bank that prides itself on being a shade above the heaps of world’s wealth-warns of the erosion of the US dollar’s ancient status as the global safe haven. The bank draws a line that stretches from the pillars of old regime to the furnace of tonight’s foreign exchange markets.

ING, as if mocking a riddle, says, “In 2025, the US dollar frankly lost a big chunk of its safe haven value relative to 2024. We foresee that the dollar will keep falling in 2026, especially when pitted against the euro.” Our baseline view: the dollar will take a wad of a bear for the rest of 2026. Fluently preserves hedging at fast tempo thanks to lower front‑end rates (we expect two Fed cuts this year), and the slowdown in US growth in the later half of the year will, in our view, dovetail with welkin eurozone exhibitor. This gives a lift to EUR/USD. We do not expect this year’s dollar decline to match 2025’s magnitude, but the concentration of risks in the US- from equity valuations to fiscal and political risks ahead of the midterm elections- remains on the downside for the greenback. We target 1.22 in EUR/USD by year‑end.

At the exact moment of this narrative, EUR/USD is them at a tasteful $1.18. And so, in the blessed theatre of finance, the great, looming tragedy of currency is gently, yet inexorably, written in the ink of humor and sarcasm. In the end, we are all but actors on this stage, letting our footfalls echo in the hallowed halls of global economics.

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2026-02-27 13:21