Yen Intervention Sets Stage for Dollar Liquidity Boost
Joint intervention by Japan and the US in the yen has sent shockwaves through global markets, but could ultimately benefit Bitcoin ($BTC) and risk assets.
The first joint intervention since the late 1990s was conducted last week to prop up the yen, which had hit forty-year lows of 164 per dollar. The New York Fed sold euros on behalf of the US Treasury using the Exchange Stabilization Fund (ESF).
US Treasury Secretary Scott Bessent has emphasized the importance of meeting with Bank of Japan Governor Kazuo Ueda at the upcoming G20 gathering, highlighting a new era of cooperation between the two countries.
Bessent also drew attention to the Federal Reserve's Foreign and International Monetary Authorities (FIMA) repo facility, which allows access to dollar liquidity without selling US Treasuries. The BoJ is one of the few central banks with access to this facility.