$31 Billion Surplus in Japan's FX Reserve Account Boosted by Weaker Yen

Japan's special government account for foreign exchange reserves posted a surplus of $31 billion in FY2025, its second-highest on record. The surplus from this account, which manages foreign exchange reserves for currency market interventions, totaled 5.06 trillion yen ($31 billion) in the fiscal year that ended in March.

The yen's depreciation boosted returns on foreign assets invested mainly in U.S. Treasuries, with interest costs more than offset by income from Treasuries due to the wide U.S.-Japan interest rate differential.

Of the total surplus, 3.13 trillion yen was transferred to the general account as revenue for FY2026, while 1.34 trillion yen was allocated to the foreign exchange fund, and 585 billion yen was carried over to the special account's FY2026 revenue.