The central bank cited recent economic and political developments in the US as a reason to diversify its ownership in foreign government securities, without giving any specifics.
The US public debt is estimated at $1.4 trillion in 2011, equal to 10% of the gross domestic product.
In May, the US total debt has reached the maximum limit of $14.3 trillion authorized by the Congress in 2010 and the Republicans and the Democrats are now discussing a possible extension of the debt ceiling. Failure to extend the cap could result in the government’s inability to pay its obligations, including interest on existing debt.
McGraw-Hill, the parent company of Standard & Poor’s agency, warned that owners of US debt could lose up to $100 billion should the world’s largest economy be cut from its current top rating of ‘AAA.’
In April, S&P affirmed the US sovereign rating, but lowered its outlook to negative, saying there’s a risk policymakers may not reach agreement on how to address the country’s long-term fiscal pressures.
Besides, Moody’s Investors Service said it could place its Aaa rating on US debt under watch in view of a possible downgrade unless the Congress resolves the debt ceiling issue by the August 2 deadline.