Philippines Considers Diversifying Away from US Treasuries After Moody’s Downgrade

The Philippines is evaluating a reduction in its holdings of US Treasury securities, according to comments from an unnamed official. "We’re looking at it," stated Eli, when questioned about potential cuts to US debt exposure. The remarks follow Moody’s recent decision to strip the US of its pristine Aaa credit rating.

Dollar assets comprise approximately 80% of the Philippines’ $104.6 billion foreign reserves as of April. For generations, US sovereign debt has served as the bedrock of global reserve portfolios—prized for its liquidity and perceived safety. That status now faces scrutiny as America’s fiscal deficit persists above 6% of GDP, a peacetime anomaly noted by ratings agencies.

The potential shift signals growing institutional unease with traditional safe havens. While no direct cryptocurrency implications were mentioned, such macroeconomic tremors often drive capital toward alternative stores of value.