Japan end-Dec forex reserves 895.32 bln usd vs 896.95 bln in Nov - UPDATE |
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Thu, 11 Jan 2007 02:15
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TOKYO (XFN-ASIA) - Japan's foreign exchange reserves fell to 895.32 bln usd in December from a record high of 896.95 bln in November, the Ministry of Finance said.Tokyo's forex reserves effectively remain the second largest in the world, next to China whose holdings reached 987.93 bln usd at the end of September, the latest official available data, the ministry said.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 last month, Japan's foreign currency reserves stood at 874.60 bln usd, IMF reserves at 1.93 bln, SDRs at 2.81 bln, gold at 15.64 bln, and other foreign currency assets of 340 mln.An MoF official said market revaluation due to a decline in US Treasury bond prices was a major factor in the drop in Japan's forex reserves last month.The yield on the benchmark 10-year Treasury note stood at 4.706 pct at the end of last month from 4.462 pct at the end of November.Japan's forex reserves are closely watched for evidence of how the country is managing its vast foreign currency holdings, as the actions may have 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 = 119.58 yen)kaori.kaneko@xfn.com
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Japan end-Dec forex reserves fall to 895.32 bln usd from 896.95 bln in Nov 