Foreign central banks have drastically reduced their holdings of US Treasury bonds held at the New York Federal Reserve to their lowest level since 2012.
Primarily central banks but also governments and international organizations—have decreased their holdings at the Federal Reserve Bank of New York by $82 billion since February 25.
As the war in Iran overturns decades of stability, central banks across the planet are making a move of desperation, "dumping" US Treasury bonds at rates not seen since 2012.
This marks a historic shift that threatens the dollar's supremacy and sends shockwaves from the US all the way to Turkey.
This decline, occurring since the war began a month ago, highlights how the spike in energy prices caused by Iran's closure of the Strait of Hormuz—a critical maritime artery—has upended the finances of oil-dependent nations.
