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KLEA Crypto Daily: Saturday, October 10, 2026
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Japan's Foreign Currency Reserves Fall Below $1 Trillion After Record Yen Intervention
Japan's foreign currency reserves have dropped to $994.9 billion at the end of August, marking a decline from $1.09 trillion in July. This significant decrease of nearly $100 billion represents the first time in recent memory that Japan's reserves have fallen below the psychologically important $1 trillion threshold.
The decline is attributed to a record ¥15.3993 trillion, approximately $96.5 billion, spent on yen-buying interventions from July 30 to August 26. This intervention marks the largest monthly total ever recorded by Japanese authorities, as they sought to stabilize the yen amid market fluctuations.
To finance this intervention, Japan liquidated a substantial portion of its foreign securities portfolio, primarily US Treasuries, which saw a month-over-month decrease of $87.8 billion. Cumulative interventions in 2026 have now surpassed ¥27 trillion, exceeding all previous annual records. Notably, the United States participated in a coordinated yen-buying operation with Japan on July 31, the first joint intervention in nearly three decades, highlighting the significance of the current economic climate.
Source: KLEA News