The End of the Dollar Era: Russia Clears U.S. Treasuries, and the U.S. May Face Economic Collapse

Russia has almost completely liquidated its holdings of U.S. Treasuries, reducing the amount to a historic low of $310 million. This move is part of Russia's long-term strategy to reduce its dependence on the dollar and mitigate the risk of sanctions. Currently, several countries around the world have joined this process.

According to data from September 2025, Russia's holdings of U.S. Treasuries fell to $310 million, a new historical low. According to the U.S. Treasury report, this reduction trend has been ongoing since August, when Russia's holdings were $390 million. Experts point out that the remaining holdings are all private investments, and the Russian Central Bank has completely stopped operations related to U.S. Treasuries.

This process is an inevitable result of Russia's continuous "de-dollarization" policy since it first faced sanctions in 2014. Ten years ago, Russia held $170 billion in U.S. Treasuries; by 2020, this number had dropped to about $10 billion; and now, Russia's holdings of U.S. Treasuries account for less than 0.005% of its total international reserves of $734.1 billion.

In the process of reducing reliance on American financial instruments, Russia is not alone. Countries officially regarded as "threats" by the U.S. government have reduced their holdings of U.S. Treasuries to $700.5 billion, the lowest level since the 2008 financial crisis. Japan and the UK, the largest holders of U.S. Treasuries, are also continuously reducing their holdings. India has reduced its holdings from $242 billion to $227 billion within a year, while increasing its gold reserves.

Economists point out that the reasons for countries adjusting their investment strategies are multifaceted. Geopolitical instability and the U.S. practice of using the dollar system as a tool for sanctions pressure have forced investors to seek alternative options for foreign exchange reserve allocation. At the same time, concerns about the stability of the U.S. economy itself continue to grow: the U.S. government debt as a percentage of GDP has exceeded 120%, and the fiscal deficit rate remains around 6%.

Financial experts warn that the U.S. fiscal burden is constantly increasing —— the annual interest expense on U.S. government debt has reached $1 trillion, which not only exceeds defense spending but also occupies a significant portion of the budget. Analysts assess that the current U.S. model of financing deficits through issuing new bonds is gradually evolving into a "financial pyramid": only by continuously attracting new investors can it fulfill its obligations to existing creditors.

Russia's strategy of shifting foreign exchange reserves to gold and alternative currencies, along with the measures taken by relevant countries to establish autonomous cross-border banking payment systems (CIPS), collectively reflect the trend of global transition to a multipolar financial system. This process not only questions the "risk-free asset" status of U.S. Treasuries, but also poses a serious challenge to the financial stability of the United States —— for decades, the U.S. has relied on global trust in its treasuries as the cornerstone of the world's financial system.

Original article: https://www.toutiao.com/article/7577195542904701450/

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