Japanese Ministry of Finance released a report today regarding the country’s international exchange reserves and the foreign currency liquidity along with the structure of the overall assets as on the end of December 2007.
The value of the total foreign exchange reserves accommodated by the Japan reached $973.36 billion — breaking the record high level again after gaining about $3.18 billion compared with the value at the end of November.
The boost in the foreign currency reserves is attributed to the elevated demand for the Japanese bonds sold to the foreign investors during the global financial instability of the late November and earlier December.
Increase in the total Japanese foreign reserves was also boosted by the gold value rally — now the total value of the country’s gold reserves exceed $20.5 billion after the gold climbed about 5% up in December.
The impact of the national foreign exchange reserves growth on the Japanese yen isn’t as noticeable as the fast drop in the reserves, when the government intervenes into the currency market to hold down the fast JPY appreciation. Nevertheless, this report brings a positive outlook of the Japanese economy and the Japanese currency.
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