5 Foreign Countries That Own the Most U.S. Debt

April 21, 2022

2 minutes read

5 Foreign Countries That Own the Most U.S. Debt

Here’s a concise breakdown of foreign ownership of U.S. debt and the latest U.S. national debt status based on the provided information:

Who Holds the Most U.S. Debt?

The largest foreign holders of U.S. debt as of July 2024 are:

  1. Japan – $1.15 trillion (13.4% of foreign-held debt)
  2. China – $776.5 billion (9.3% of foreign-held debt)
  3. United Kingdom – $728.3 billion (8.7% of foreign-held debt)
  4. Luxembourg – $399.9 billion (4.8% of foreign-held debt)
  5. Cayman Islands – $378.1 billion (4.5% of foreign-held debt)

Why Does the U.S. Incur Debt?

The U.S. borrows by issuing Treasury securities to cover the gap between its revenues (tax income) and spending on things like defense, welfare programs, and infrastructure.

  • Total U.S. national debt: $35.68 trillion (as of October 10, 2024)
  • Roughly 80% of the national debt is public debt (held by investors and foreign countries).
  • The remaining 20% is intragovernmental debt (money owed within U.S. agencies, like Social Security and Medicare funds).

Breakdown of U.S. Debt Types

  1. Public Debt:
    • Held by foreign governments, U.S. banks, investors, pension funds, and the Federal Reserve.
  2. Intragovernmental Debt:
    • Debt the government owes to federal programs, such as Social Security or retirement funds.

Why Do Countries Hold U.S. Debt?

  • Japan and China invest in U.S. Treasury securities because they are safe, liquid assets.
  • China benefits from holding U.S. debt as it strengthens the dollar, making Chinese exports cheaper and more competitive globally.
  • Luxembourg and the Cayman Islands are known as tax havens, where wealth is channeled into various investments, including U.S. debt.

Debt Ceiling and Increases

The U.S. Congress sets a debt ceiling to control the amount of debt the government can take on.

  • In December 2021, the ceiling was raised to $31.4 trillion.
  • In June 2023, the ceiling was suspended until 2025 to avoid default as debt exceeded the limit.

The Bottom Line

  • The national debt continues to rise because government spending exceeds revenue.
  • Countries like Japan and China hold U.S. debt to stabilize their economies through secure investments.
  • Despite growing concerns, U.S. Treasury securities remain some of the safest assets globally due to their stability and the dominance of the U.S. dollar in international trade.

This snapshot provides a comprehensive look at U.S. debt ownership and the key factors driving the national debt’s growth.

Share:
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Related Links

Atiku, Obi Coalition

Atiku and Obi Join to Challenge Tinubu in 2027 Nigerian Election

In a seismic shift in Nigerian politics, former Vice President Atiku Abubakar and former Labour ...

Jota

Liverpool Star Diogo Jota and Brother Die in Tragic Car Crash

Liverpool forward Diogo Jota, 28, and his brother Andre Silva, 25, have tragically died in ...

Trump

Trump to Host African Leaders for Trade Summit in July 2025

U.S. President Donald Trump will host a mini-summit with the leaders of Gabon, Guinea-Bissau, Liberia, ...

Trump Administration Shuts Down USAID

The United States Agency for International Development (USAID), a cornerstone of U.S. foreign assistance for ...

Features

Netherlands Returns 119 Looted Benin Bronzes to Nigeria

On Thursday, June 26, 2025, the Netherlands returned 119 looted artifacts, known as the Benin ...

Ngugi-wa-Thiongo

Ngũgĩ wa Thiong’o:Passed the pen to the Next Generation.

Ngũgĩ wa Thiong’o, a legendary Kenyan writer, scholar, and revolutionary voice in African literature passed ...

ECOWAS

ECOWAS Celebrates 50th Anniversary Amid Sahel States Tensions

On May 28, 1975, fifteen West African nations signed the Lagos Treaty, establishing the Economic ...

What Really Moves Bitcoin’s Price? A Comprehensive Guide to the Key Drivers of Volatility and Value

What Really Moves Bitcoin’s Price? A Comprehensive Guide to the Key Drivers of Volatility and Value

​Bitcoin, the pioneering cryptocurrency, has captivated the financial world with its innovative technology and notable ...

Guinea Sets September 2025 Date for Constitutional Referendum as Military Inches Toward Democratic Transition

Guinea Sets September 2025 Date for Constitutional Referendum as Military Inches Toward Democratic Transition

Guinea’s military-led government has officially announced that a national referendum on a new constitution will ...

Ivory Coast economic growth

Côte d’Ivoire’s Economic Boom Faces Political Test in 2025 Election

Ivory Coast’s Economic Success: A Model for West Africa Côte d’Ivoire has emerged as one ...

Phillis Wheatley

Phillis Wheatley: The Trailblazing African American Poet Who Defied Oppression

Phillis Wheatley: A Pioneer in Black Literature and Poetry Phillis Wheatley was a groundbreaking poet ...

Women Participation in Politics

International Women’s Day 2025: Advancing Rights, Equality, and Leadership for African Women

The 2025 International Women’s Day (IWD) theme, “For ALL Women and Girls: Rights. Equality. Empowerment,” ...

Latest News

Today in History

July 4th is the day in 1636 that City of Providence, Rhode Island forms.

Exchange Rate Per Dollar

AM Armenian Dram384.9909
GH Ghana Cedi10.3682
GM Gambian Dalasi71.5
GN Guinea Franc8,681.18
NG Nigerian Naira₦1,529.8
CF CFA Franc BEAC556.788
04 Jul · CurrencyRate · USD
CurrencyRate.Today
Check: 04 Jul 2025 07:05 UTC
Latest change: 04 Jul 2025 07:00 UTC
API: CurrencyRate
Disclaimers. This plugin or website cannot guarantee the accuracy of the exchange rates displayed. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates.
You can install this WP plugin on your website from the WordPress official website: Exchange Rates🚀

YOUR THOUGHTS

Let us know what you think

Contact the People’s Paper with feedback on stories and how we could make wapress.africa even better!

newsletter image

Stay up to date with the latest from West Africa Press

Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on WApress.

Subscribe Newsletter!

Be the first to receive our latest contents and more...

Need help?