Over 200 Central Banks Reportedly Dump $48B US Treasuries Amid Dollar Stability Concerns

More than 200 central banks and foreign entities have collectively withdrawn approximately $48 billion in U.S. Treasuries from the New York Federal Reserve since late March, amid concerns over the stability of the U.S. dollar and the impact of President Donald Trump’s tariff policies. This significant pullback has caused a decline in foreign participation in the Treasury market, which typically serves as a critical source of demand for U.S. debt, accounting for around 30% of the market. Analysts from Bank of America and Apollo Global Management warn that reduced foreign demand could force the U.S. Treasury to offer higher yields to attract buyers, potentially driving up borrowing costs across the economy, including mortgages and small-business loans. The withdrawal trend is unusual because proceeds from U.S. debt sales are usually placed in the New York Fed’s reverse repurchase facility, but foreign participation there has also fallen sharply. The dollar’s status as the world’s reserve currency is under scrutiny as these shifts raise broader questions about confidence in U.S. financial obligations and the sustainability of rising federal deficits. Market observers are concerned that continued foreign divestment could lead to increased financial turbulence and higher interest rates, complicating the government’s ability to finance its debt efficiently.