Japan's foreign exchange reserves recorded their biggest drop ever in August, according to official data released today. The significant decrease in reserves occurred after the Japanese government's intervention in the foreign exchange market to stop the depreciation of the national currency.
The Bank of Japan and the Ministry of Finance carried out the intervention with the aim of containing the yen's decline against the American dollar. This operation was considered necessary due to the strong pressure on the Japanese currency during that period.
The United States expressed support for the Japanese intervention. This collaboration between the two countries was highlighted as a relevant factor in the context of the measures taken to stabilize the foreign exchange market.
The official data published today confirms the historical dimension of the reduction in foreign exchange reserves, which reflects the high cost of defending the yen in the international market during the month of August.
