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Foreign Reserves

All articles tagged with #foreign reserves

business1 month ago•9 min saved

Japan’s Yen Defense Delivers Big Profits Even as FX Reserves Fall to Record Lows

Japan’s Ministry of Finance disclosed that foreign currency reserves fell by a record $95 billion in August as it sold US Treasuries to support the yen, part of four months of interventions that slashed reserves by about $174 billion. Profits from these interventions flow into the Foreign Exchange Fund Special Account (FEFSA); about 30% is kept as a buffer while 70% is moved to the General Account, financing a government slush fund and policy measures such as a food tax cut. The piece emphasizes that these interventions have been hugely profitable, even as the yen remains weak and reserves shrink.

via Wolf Street|

#business #fefsa #foreign-reserves

business1 month ago•2 min saved

Japan's FX reserves plunge to record low after aggressive yen defense

Japan's foreign reserves fell 6.18% in August to $1.207 trillion—the fastest drop on record—driven by interventions to prop up the yen and a fall in government-bond values, bringing total yen intervention to 27.1 trillion for the year and marking the largest yearly amount ever spent on currency support, aided by a rare coordinated move with the United States.

via CNBC|

#business #currency-market #foreign-reserves

economy3 years ago•1 min saved

Bank of Israel Sells $30 Billion in Foreign Reserves as Shekel Hits 8-Year Low

The Bank of Israel has announced plans to sell up to $30 billion in foreign reserves to support the Israeli shekel, which has weakened to its lowest level in seven years following the recent deadly incursion by Hamas militants. The central bank aims to moderate volatility in the shekel exchange rate and ensure the proper functioning of markets. In addition to the reserve sales, the bank will provide liquidity through SWAP mechanisms. The Israeli economy is expected to recover quickly unless there is a physical attack by Iran, according to Zvi Eckstein, former deputy governor at the Bank of Israel.

via CNBC|

#bank-of-israel #currency-exchange-rate #economy

finance3 years ago•2 min saved

Russia to Replenish Foreign Reserves by Buying Yuan Amidst Sanctions and Oil-Cap Hit

Russia is expected to start buying Chinese yuan to replenish its foreign reserves for the first time since it invaded Ukraine in 2022. The move indicates that Western sanctions and a G7-led price cap on Russian crude aren't enough to curb Russia's energy revenues. Russia is likely to snap up around $200 million in Chinese yuan each month, marking a reversal of its yuan sales from its reserves to cover its budget deficit. Russia has managed to maintain its energy revenues by forcing oil producers to pay more taxes and redirecting oil exports to alternative markets such as China and India.

via Business Insider|

#china #energy-revenues #finance