Japan’s foreign reserves stood at $1.17 trillion at the end of April, almost unchanged from $1.16 trillion in March, after Tokyo reportedly intervened in the currency market on April 30 to support the yen. [1, 2, 3]
The finance ministry released the data on Tuesday. Several reports said the intervention may have come too close to month-end to show up in the April reserve figures. [1, 2]
Japan’s holdings of foreign securities were about $1 trillion, while foreign deposits totaled $162 billion, both broadly unchanged from the previous month, the ministry data showed. [1, 2]
Reports also said Tokyo may have stepped into the market again in early May. The timing matters because reserve data can lag the cash effect of intervention when it comes at the end of a reporting period. [1, 2]
Citi strategist Osamu Takashima said Japan’s foreign reserves exceed $1.3 trillion and estimated the authorities could eventually spend as much as 30 trillion yen on intervention. “If the Ministry of Finance is prepared to accept a decline in foreign reserves on the same scale as in 2022 to 2024, then it may buy about 30 trillion yen,” he said. [4]
The April data came after the U.S. Treasury said marketable Treasury securities held in Federal Reserve custody fell $8.7 billion to $2.73 trillion in the week ended May 6. [1, 2]
U.S. Treasury Secretary Scott Bessent was in Tokyo on Tuesday and met Japanese leaders. [1, 2]
