BRICS Sell $28.8B in Treasuries as Dollar Faces Risks (2026)

BRICS trim $28.8B in U.S. Treasuries in October as reserves diversify, reinforcing a net‑bearish dollar outlook for 2026

  • BRICS nations cut U.S. Treasury holdings by about $28.8 billion in October.
  • Year-over-year reductions from October 2024 to October 2025: China $71.4 billion, Brazil $61.1 billion, India $50.7 billion.
  • JPMorgan projects a net bearish dollar for 2026, while the Fed’s easing stance could narrow rate differentials.
  • ING warned the group is, in effect, *”quietly leaving”* the U.S. Treasury market as reserves diversify.

In October, BRICS countries sold roughly $28.8 billion of U.S. Treasuries. India led with a $12 billion cut, China reduced holdings by $11.8 billion, and Brazil trimmed about $5 billion, according to U.S. Treasury Department data from the Treasury International Capital (TIC) system (TIC is U.S. data on foreign holdings of Treasury securities).

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TIC data also shows larger reductions over the past year. Between October 2024 and October 2025, China offloaded about $71.4 billion, Brazil sold roughly $61.1 billion, and India reduced holdings by about $50.7 billion.

JPMorgan’s currency outlook for 2026 signals further dollar weakness. According to Meera Chandan, co-head of Global FX Strategy at JPMorgan, "Our dollar view for 2026 is net bearish, albeit smaller in magnitude and less uniform in breadth than in 2025." The bank forecasts EUR/USD at 1.20, GBP/USD at 1.36, and USD/JPY at 164 by end-2026.

The expected dollar pressure links to the Federal Reserve’s planned rate cuts. The Fed easing while the European Central Bank holds and the Bank of Japan may tighten narrows interest rate gaps and can support other currencies versus the dollar.

The selloff reflects broader de-dollarization (reducing use of the U.S. dollar in reserves and trade) and shifts in reserve management. Central banks in the group have been diversifying away from dollar assets and increasing Gold holdings. ING analysts said BRICS are "quietly leaving" the U.S. Treasury market, and they note private-sector buyers have absorbed much of the recent selling.

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