Asian creditors least of America's worries- analysts
The US Congress would need to increase the US government's debt ceiling or risk defaulting on its loans. However, a Reuters analysis report revealed that Asian creditors would not be a cause for concern for the US.
According to advisers and managers of sovereign wealth funds, Asian governments would most likely not shift their wealth. According to the analysis, Asian governments do not believe that a US debt default would happen. Even if it would happen, Asian governments had thought that the debt markets in the US would still be the best in the world. On the other hand, a Japanese government official, who spoke on the condition of anonymity, told Reuters, "We're keeping an eye on potential market risks such as tapering, the debt ceiling and a government shutdown, but that does not necessarily mean we regard the current situation as critical."
The governments of China, Japan and other Asian countries currently have foreign exchange reserves worth USD 5 trillion in US dollars. Over 60% of these are in US Treasuries, based on estimates by the International Monetary Fund.