Japan’s Suzuki: Government cannot confiscate reserves foreign central banks park with BOJ

Dhwani Mehta FXStreet

Japanese Finance Minister Shunichi Suzuki said on Monday, “under the current law, government cannot confiscate the Russian reserves foreign central banks park with the Bank of Japan (BOJ).

His comments come after the BOJ intervened for the second time this year to defend its implicit yield cap by offering to buy unlimited amounts of 10-year Japanese government bonds (JGBs) at 0.25%.

The 10-year JGB yield advanced further to a six-year high of 0.245% in early Asia, closing on the central bank’s tolerance level.

Market reaction

USD/JPY is trading around 123.00, rallying hard on the BOJ’s intervention, up 0.75% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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