Japan forex reserve losses jump to record -Nikkei

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TOKYO, April 2 (BestGrowthStock) – Japan suffered record unrealised
losses of over 24 trillion yen ($255.7 billion) on its foreign
exchange reserves in the just-ended financial year due to the
yen’s sharp rise, the Nikkei business daily said on Friday.

The losses are a setback for the Democratic Party-led
government, which Finance Minister Naoto Kan has said aims to tap
non-tax revenues held in special accounts to fund spending and
restore tattered public finances.

But Kan has denied instructing ministry officials to tap cash
reserves in the forex special account for funding policy
spending. [ID:nTOE62F03M]

Japan’s foreign exchange reserves came to about 20 trillion
yen in 2009/2010. They surged as a result of massive yen-selling
market interventions between 2003 and 2004 and are currently
managed by investing chiefly in U.S. Treasury bonds.

But the foreign exchange loss of over 24 trillion yen in the
fiscal year that ended on Wednesday, if realised, would wipe out
cash reserves in the forex special account, the Nikkei said.

Japan will announce its latest reserves figures on April 7.

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($1=93.85 Yen)
(Reporting by Rie Ishiguro)

Japan forex reserve losses jump to record -Nikkei