Iraq has officially dropped out of the top 20 foreign holders of US Treasury bonds, marking a shift in its financial strategy. This Iraq Treasury Bonds Exit comes as global holdings of US Treasury securities climbed above $9.05 trillion in 2025, according to the US Department of the Treasury.
Additionally, in the latest rankings, Japan held the top spot with $1.13 trillion. The United Kingdom followed with $779 billion. China ranked third, maintaining $765 billion in US bonds. Other high-ranking holders included the Cayman Islands with $455 billion and Canada with $426 billion.
Therefore, among Arab nations, Saudi Arabia and the United Arab Emirates stayed within the top 20. Their holdings stood at $131 billion and $111 billion, respectively. These numbers reflect their continued investment confidence in US financial markets.
Iraq, however, saw its name removed from the updated list. In 2023, Iraq still appeared among the top 20 with $32.6 billion in US Treasury securities. Its absence in 2025 signals a clear reduction in foreign reserves held in American bonds.
The Iraq Treasury Bonds Exit raises questions about the country’s evolving economic priorities. Analysts suggest that Iraq might be redirecting its reserves toward domestic development or more diversified investments. These changes could be part of a broader strategy to reduce dependence on the US financial system.
Additionally, global economic uncertainty and rising interest rates may have influenced Iraq’s decision. Shifts in currency reserves often reflect changes in national policies, geopolitical concerns, or new financial goals.
While Iraq steps back, other regional powers like Saudi Arabia and the UAE continue to view US bonds as safe assets. Their presence in the top 20 underscores their long-term trust in US economic stability.
The Iraq Treasury Bonds Exit adds a new dimension to how countries manage their sovereign wealth.As a conclusion, with the global financial landscape constantly changing, Iraq’s future steps will be closely watched by investors and economists alike.