Japan may use its holdings of foreign securities to fund a record-breaking currency market intervention over the past month

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Golden Finance reports that on June 22, Japan may have used its holdings of foreign securities, including U.S. Treasury bonds, to fund record-breaking currency market interventions over the past month, a move that could attract the attention of the United States. According to reserve data released by Japan's Ministry of Finance on Friday, as of the end of May, Japan's holdings of foreign securities decreased by $75.6 billion compared to April. This decline roughly matches the amount Japan has recently spent on market interventions to support the yen. Last week, Japan's Ministry of Finance confirmed that as of May 27, the funds used for currency market interventions in that month reached a record 11.73 trillion yen ($73.4 billion). A Ministry of Finance official who spoke at the report briefing admitted that currency market interventions are one of the reasons for the significant decline in foreign exchange reserves, and stated that this decrease was the largest on record.
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