Japan forex reserves hit new record hig

Japan said Wednesday its foreign exchange reserves hit a record high
$1.3 trillion in November after authorities intervened in currency
markets to stem the yen's rise.







The level was $94.88 billion higher than in October, the finance
ministry said, and surpassed a previous record of $1.22 trillion set in
August.
The reserves are composed mainly of foreign-currency
denominated securities and bank deposits along with gold and other
assets, according to ministry data.
The country's forex reserves, the second-biggest in the world after China,
expanded following Japan's intervention in currency markets on October
31, after the yen hit a fresh post-war high of 75.32 against the dollar.
In the month to November 28, Tokyo sold 9.09 trillion yen ($116.99 billion) to tame the unit's appreciation, the ministry said earlier.
The
government did not reveal how many times it stepped into currency
markets between October 28 and November 28, but it was the fourth
intervention since September 2010.
Market observers believe authorities likely made other "masked interventions" during the period, which they did not announce, Jiji Press said.
A
strong yen hurts Japanese exporters by making their products relatively
more expensive overseas and shrinking their foreign earnings when
repatriated.
The latest data did not break down foreign exchange
assets by currency, but Japan has bought 2.975 billion euros worth of
debt issued by the eurozone bailout fund, the European Financial Stability Facility, so far this year.
Tokyo
fears any further deterioration in the European crisis could cause
serious problems for Japan's export-dependent economy as it gradually
recovers from the impact of the March 11 earthquake and tsunami.
The dollar was changing hands at 77.72 yen in Tokyo trade on Wednesday.




Source:

AFP Global Edition
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If the eruo zone and American does not fix these problems the whole world will collapse its financial systems and Japan will get hit hard, like many other countries, including this one. Great find! AJ