News Analysis If China “dumped” all of its U.S. debt and U.S. Treasury bills in a single day, it would lose a lot of money, decrease its ability to purchase raw materials, and benefit the U.S. Fed that would buy up the Treasury bills at a discount. There are five international currencies that central banks around the world commonly hold in reserves: the U.S. dollar, euro, Chinese yuan, Japanese yen, and the UK pound. China’s foreign currency reserves, the world’s largest, now stand at $3.218 trillion. This number is divided among the international currencies, with the dollar being the largest percentage. The total U.S. debt held by China is $1.095 trillion, which represents about 4 percent of the U.S. national debt of $28 trillion. Over the past 20 years, either Japan or China has held the most U.S. debt. Currently, Japan holds slightly more than China. According to the Fed …