China's holding of US treasuries declined to its lowest level since 2013 in July, marking a decrease for a fourth-straight month.

China is the biggest US creditor; the US government owed Beijing about $1.219 trillion of debt as at July. Japan held $1.155 trillion worth of US treasuries as it retained its position as the second-biggest holder of the bonds.

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According to Bloomberg, China's holding showed a $22 billion decline from the previous month. The drop is the largest decline since 2013. However, Japan's holding increased by $6.9 billion during the same period. Saudi Arabia also experienced a decline in its holding of US treasuries for the sixth consecutive month. The Arab nation held $96.5 billion worth of US government bonds in the month of July.

However, China's foreign exchange reserve showed little change during the month and was reported at $3.2 trillion. In the month of August, the reserve declined by $16 billion to touch it lowest level since 2011. Reuters reported that the decline in China's holding raises concerns about whether the country is using the proceeds to manage the yuan price.

China is currently waiting for its official inclusion in the International Monetary Fund's Special Drawing Rights basket. The inclusion is likely to take place in October. It is believed that the country's central bank is trying to keep the currency stable ahead of the event.

The data released by US Treasury Department showed that foreign investors sold $13.1 billion worth of US government debt in the month of July, down from $32.9 billion in the previous month.

Tagschina, Japan, US Treasury department