Japan Oct Foreign Reserves Hit New Record High of $1.118 Trln

First Published Monday, 8th November 2010 06:09 am - © 2010 MNI News

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TOKYO (MNI) - Japan's foreign reserves hit another record high of $1.118 trillion at the end of October, surpassing the previous record high of $1.110 trillion marked at end-September, the Ministry of Finance said on Monday. In October, the Japanese government didn't conduct yen-selling intervention but the foreign reserves appeared to have been pushed up by interest payments on Japan's holdings of U.S. Treasuries.

In September, the reserves were pushed up by the large-scale forex intervention to sell yen for the U.S. currency that Japan conducted for the first time in over six years in a bid to prevent the yen's rapid rise from hurting exporter profits and thus a sustained economic recovery. The country's forex reserves remain the second largest in the world, next to China's which are estimated at $2.65 trillion at the end of September.

The biggest changes in Japan's forex reserves usually occur when the Bank of Japan intervenes in the currency market on behalf of the MOF to prevent a steep appreciation or depreciation of the yen. Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, International Monetary Fund reserves, IMF special drawing rights (SDRs) and gold. At the end of last month, Japan's foreign currency reserves stood at $1.059 trillion, IMF reserves at $4.61 billion, SDRs at $21.04 billion, gold at $33.13 billion and other reserve assets at $445 million.

tokyo@marketnews.com ** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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