Japan end-March forex reserves at record 908.96 bln usd - UPDATE |
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Fri, 06 Apr 2007 02:33
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TOKYO (XFN-ASIA) - Japan's foreign exchange reserves surged to a record 908.96 bln usd at the end of March from the previous record of 905.05 bln in February, the Ministry of Finance said.Tokyo's forex reserves remain the second largest in the world, next to China, whose holdings reached 1.0663 trln usd at the end of 2006, according to official data from China's central bank.An MoF official attributed the rise in Japan's foreign reserves to profits from US Treasuries and other securities and the rise in the euro against the US dollar, which inflated the dollar value of euro-denominated assets.Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, plus International Monetary Fund reserves, IMF special drawing rights (SDRs) and gold.At the end of March, Japan's foreign currency reserves totaled 887.98 bln usd, IMF reserves were at 1.51 bln, SDRs at 2.83 bln, gold at 16.28 bln, and other foreign currency assets 347 mln.The reserves are closely watched for evidence of how the country is managing its foreign currency holdings. Its actions are seen having a significant impact on currency exchange rates and global bond markets, particularly the US government bond market.The biggest changes in Japan's forex reserves usually occur when authorities intervene in the currency market to prevent the yen from appreciating too much.Monetary authorities have not intervened since mid-March 2004.(1 usd = 118.74 yen)kaori.kaneko@xfn.com
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Japan end-March forex reserves at record 908.96 bln usd 