Japan's Foreign Reserves Plummet Amid Record-Setting Interventions

Japan's foreign reserve assets plummeted by a record 6.18% in August, dropping to $1.21 trillion due to government bond and foreign exchange interventions.

The decline was largely attributed to the market value of bonds held in reserves decreasing amid rising interest rates, as well as the direct result of currency interventions conducted between July 30 and Aug. 26, a ministry official stated.

The Japanese government's decision to spend $96 billion on dollar-selling, yen-buying interventions marks a record high for a single year amidst the yen's depreciation.