At the end of September, Japan's foreign exchange reserves fell by the largest amount in history compared to the previous month.

In addition to the decline in the valuation of US government bonds, the large-scale market intervention by the government and the Bank of Japan to sell the dollar and buy the yen also had an impact.

Japan's foreign currency reserves as of the end of last month, announced by the Ministry of Finance on the 7th, decreased by more than $54 billion from the previous month to $1.238 trillion, or more than ¥179 trillion in Japanese yen.

This is the second consecutive month of decline and the largest decline ever.



As interest rates on U.S. government bonds rose and bond prices fell, the appraisal value of the "securities" held decreased, and the government and the Bank of Japan put a brake on the rapid depreciation of the yen. The main factor was the market intervention to sell the US dollar and buy the yen.



Of the foreign exchange reserves, the balance of "deposits", which are said to be easy to withdraw if the country decides to intervene in the market, is more than $136.1 billion, or more than 19.73 trillion yen in Japanese yen.



As foreign exchange reserves, which are used to fund market intervention by selling the dollar and buying the yen, are decreasing, the focus of the financial markets is whether the government and the Bank of Japan will again intervene in the market as the yen depreciates further.