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2025-07-31 10:40:11
Japan's foreign exchange reserves account posted a record surplus of $36 billion in fiscal 2024. Japan's special account for foreign exchange reserves posted a record surplus of $36 billion in the fiscal year ending in March, driven primarily by solid returns on overseas assets, amplified by a weaker yen. Japan's Ministry of Finance said Thursday that the total surplus in this special account, which manages foreign exchange reserves used for currency market intervention, was 5.4 trillion yen (approximately $36.18 billion), a 38% increase from the previous year. The strong returns reflected the wide spread between yen-denominated debt and holdings of high-yielding foreign securities. Most of these holdings are believed to be U.S. Treasuries purchased as part of interventions to buy dollars when the yen strengthens. The depreciation of the yen also boosted the value of foreign exchange reserves in yen terms. The Japanese government will allocate the $3.2 trillion surplus to its general budget account for this fiscal year, with one-third allocated to defense. The special account is used to partially fund the state-owned Japan Bank for International Cooperation (JBIC), which will provide loans and equity investments for Japan's $550 billion investment plan agreed to in the U.S. tariff deal.
