JAPAN BURNED $98.7 BILLION IN A MONTH DEFENDING THE YEN
It is the largest intervention of its kind on record, per WSJ — a single month of official buying aimed at holding up one currency.
🚨 $98.7 billion. That is what Japan spent in a single month propping up the yen, according to WSJ.
It is a record for this kind of currency defense.
When a government intervenes in the foreign exchange market, it is spending real reserves to buy its own currency and hold the price up. Doing it once is a signal. Doing it at this size, in one month, is a statement that the slide in the yen was no longer acceptable.
WSJ reports the figure covers the past month. Further detail on the timing and mechanics was not available.
A weaker yen makes Japanese exports cheaper abroad and makes imports, including energy, more expensive at home. That tension is the whole argument over whether to intervene at all.
📉 Currency interventions are famously hard to win. Markets are bigger than treasuries, and a defense only holds if the underlying pressure eases.
Do you think $98.7 billion is money well spent, or money the market takes and keeps pushing?
#yen #japan #forex #markets #causeanuproar
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WSJ
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