It appears that a dollar crash could be imminent, as no one wants to buy American debt anymore. Earlier this week, Goldman Sachs said that the United States' policy of sanctions and tariffs against major economies, including Russia, China, and Iran, have dragged down the dollar's share of global central-bank reserves. Meanwhile, the data from the International Monetary Fund confirms that the US dollar's share in the global central-bank reserves dropped to 62.3 percent from April to June. Meanwhile, holdings in the euro, yen, and yuan gained as a share of allocated reserves.
According to a report by RT, China's holdings of U.S. sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines. China, the world's second-largest economy, has been bolstering its national currency amid an ongoing trade war with the U.S. China still remains the biggest foreign holder of US Treasuries, however, followed by long-time US ally Japan. That could all change though should the country continue to dump the dollar.