Japan is Liquidating Billions in US Treasuries to Stabilize its Currency
Recent data from the US Treasury reveals that Japan sold $22 billion in Treasury securities in May, bringing its total holdings down to $1.128 trillion.
This follows a $37.5 billion reduction in April, marking the second consecutive month of significant divestment.
This sell-off is part of Japan’s strategy to address the yen’s sharp decline against the US dollar. Over the past month, Japan has expended $36.6 billion to counteract currency speculators, according to Bloomberg.
The recent intervention in July, similar to previous actions in April and May, underscores Japan’s commitment to managing the yen’s volatility.
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Early indications suggest that these measures might be improving the yen’s performance, partly due to speculation that the interest rate gap between Japan and the US could narrow.
Japan is not expected to provide further details on its currency interventions until November. However, upcoming data on foreign reserves could offer insights into whether the Treasury sales are being used to fund yen purchases directly.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
