Japan's Foreign Reserves Drop Record $80 Billion Amid Yen Intervention
Japan’s foreign reserves fell by a record $80 billion, or 6.18%, to $1.207 trillion in August as the country engaged in significant interventions to support its weakening yen. This marks the fourth consecutive monthly decline and surpasses May's previous drop of 5.58%. The intervention involved selling dollars and buying yen, with a total of 27.1 trillion yen spent so far this year—the largest annual amount for such actions on record. The interventions were part of coordinated efforts between Japan and the U.S., marking their first joint action since 1998 to stabilize the yen after it hit a 40-year low against the dollar in July. The decline is attributed more to policy measures than financial distress, according to experts.
Topics: currency policy foreign reserves Japan yen intervention