Japan's Overseas Securities Holdings Drop by $75.6 Billion in May

Japan's holdings of overseas securities saw a significant reduction in May, indicating that the Japanese government may have utilized foreign assets, including U.S. Treasury bonds, to fund its record-breaking currency market intervention over the past month. According to Odaily, data released by Japan's Ministry of Finance on Friday revealed that the country's overseas securities holdings decreased by $75.6 billion compared to April. By the end of May, Japan's total foreign exchange reserves fell to $1.09 trillion. Foreign currency deposits, another potential source of intervention funds, remained largely unchanged at $162 billion. It has been confirmed that Japan's intervention in the foreign exchange market reached a historic high of 11.73 trillion yen ($73.4 billion) in the month ending May 28.