The Kingdom of Morocco ranks seventh in the Arab world in terms of investment in US Treasuries, while the Kingdom of Saudi Arabia leads the way with a total of $ 124 billion.
According to a report published by the magazine “Forbes”, Morocco’s investments in US Treasury bonds amounted to $ 4.1 billion, or about 37 billion Moroccan dirhams. Morocco’s investments in this regard represent 1.70% of investments by Arab countries and 0.06% of global investments.
A bond is a loan in which the buyer is the creditor and the issuing institution the debtor. The debt is collected at an agreed later date. US treasury bills are used to finance the US state. Treasury bills are considered zero risk loans and attract investors during times of stress.
Eleven Arab countries invested a total of $ 246.7 billion in these US Treasuries at the end of June, which represents 3.5% of total global investment. Saudi Arabia is the largest Arab country investing in US debt securities, with 50.6% of Arab investments combined.
Countries are willing to invest in US debt securities because of the low risk associated with this type of investment and the fact that bonds and treasury bills are assets that can be quickly converted into cash. “Forbes” magazine reports that buying these bonds on the US stock exchanges is like debt for the United States, which means that the country that buys these bonds becomes one of the creditors of the US Treasury.
Japan and China are the two largest creditors of the United States, at the top of the list of countries in the world with treasury bills. The first invests $ 1.26 trillion and the second invests $ 1.07 trillion. In the Arab world, comes second after Saudi Arabia, Kuwait with investments amounting to 44.9 billion dollars, followed by Iraq with investments of 31.5 billion dollars, then the United Arab Emirates with $ 26.1 billion.
The Sultanate of Oman comes in fifth on this list, with investments of $ 6.1 billion, Qatar with $ 4.6 billion and Egypt with $ 2.2 billion. Ninth place went to Bahrain with an investment of $ 1.3 billion, followed by Algeria with $ 680 million, while at the bottom of the rankings Lebanon, with investments amounting to two million of dollars.