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Private investors around the world continue to show strong confidence in the United States economy, with the country receiving high foreign inflows in May 2025.
According to the monthly data released by the U.S. Department of the Treasury, foreign private investors poured in USD 333.2 billion during the month, making US a highly attractive investment destination. The data is part of the Treasury International Capital (TIC) report for May 2025. The total net foreign inflow, which includes acquisitions of long-term and short-term U.S. securities and banking flows, stood at USD 311.1 billion. This figure includes both private and official investment flows. Out of the total, net foreign private investment inflow of USD 333.2 billion, net foreign official outflows were at USD 22.1 billion. This shows that the major push in foreign investment came from private investors, as official institutions slightly reduced their holdings. The TIC (Treasury International Capital) data tracks cross-border capital flows into and out of the United States. It includes Foreign holdings and purchases of U.S. securities (e.g., Treasury bonds, stocks, corporate bonds), U.S. purchases of foreign securities, Banking liabilities and custody flows. In May, foreign residents have also increased their holdings of long-term US securities. The net purchase of these securities reached USD 318.5 billion. Out of this, private foreign investors contributed USD 287.5 billion, while foreign official institutions bought USD 31.1 billion worth of long-term U.S. securities. Meanwhile, U.S. residents also increased their investments abroad. They bought USD 59.1 billion worth of long-term foreign securities in May, showing that US remains a strong investment hub, American investors are also exploring opportunities in overseas markets. When including adjustments such as estimated foreign acquisitions of U.S. stocks through stock swaps, the overall net foreign sales of long-term securities are estimated to have been USD 259.4 billion in May. Short-term investments also saw movement. Foreign residents increased their holdings of U.S. Treasury bills by USD 0.5 billion. Additionally, foreign holdings of all dollar-denominated short-term US securities and other custody liabilities rose by USD 10.3 billion. (ANI)
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