Japan's foreign exchange reserves registered a decline representing the fourth consecutive monthly decrease. The main cause of this decrease was the foreign exchange intervention carried out by the country in late July, which consisted of buying yen and selling dollars.
This intervention aimed to stabilize the Japanese currency, which had been weakening significantly against the dollar. The recorded decline is the steepest since April 2000, which highlights the exceptional scale of the operation carried out by the Japanese government.
The Bank of Japan and the country's Ministry of Finance have been closely monitoring the yen exchange rate evolution, resorting to these direct interventions in the foreign exchange market to try to halt the devaluation of the national currency.
