Japan International Reserves

Japan's International Reserves measure the total value of foreign exchange and gold reserves, the IMF reserve positions and special drawing rights of Japan. They reflect foreign currency denominations stored in advance by the government or central bank in case the foreign exchange rate of Yen falls sharply or the home country falls into an economic crisis and falls into payment of external debt. It is an asset.

Japan's Ministry of Finance has announced that International Reserves held by the Ministry of Finance and the Bank of Japan have reached a record high for the first time at the end of February 2008, surpassing the $ 1 trillion mark. It keeps growing since then.

Currently this amount is estimated to be about 100 trillion yen, equivalent to 20% of Japan's GDP (nominal gross domestic product). Japan's foreign exchange reserves are high from an international point of view, and it is the second largest amount among all countries, after China.

The influence of the Foreign Reserves growth or decline on the yen quotes is indirect. The growth of the foreign exchange reserves can serve as a measure to support or pressure the yen, depending on the specific inflationary goals of the Bank of Japan.