Japan may have sold overseas securities to fund forex intervention

Odaily News According to data released by Japan's Ministry of Finance on Friday, Japan's holdings of overseas securities decreased significantly in May, suggesting that the Japanese government may have used overseas assets, including U.S. Treasuries, to fund its record-breaking currency market intervention over the past month. The data shows that Japan's holdings of overseas securities decreased by $75.6 billion from April.

As of the end of May, Japan's total foreign exchange reserves fell to $1.09 trillion. Foreign currency deposits, another potential source of intervention funds, remained largely unchanged at $162 billion. It was previously confirmed that, in the month through May 28, Japan's foreign exchange market intervention reached a record high of 11.73 trillion yen (approximately $73.4 billion). (Jin Shi)