Japanese Authorities Have Spent A Record Amount To Prop Up The National Currency

• 28.08.2026, 17:27

$96.5 billion in a month.

Japanese authorities have spent a record 15.4 trillion yen ($96.5 billion) on currency market interventions over the past month to prop up the yen. This is reported by Reuters.

“The scale of these measures demonstrates Tokyo’s determination to halt the yen’s decline, which has reached a 40-year low. The currency’s depreciation threatens the profits of Japan’s largest exporters and drives up the cost of imports, including energy,” the article states.

As the publication notes, Japan is almost entirely dependent on energy imports, 95% of which come from the Middle East. This makes the country vulnerable to supply disruptions due to the conflict surrounding Iran.

At the same time, the Bank of Japan’s relatively slow pace of monetary tightening keeps interest rates low in the country compared to markets such as the U.S., which encourages investors to continue financing global transactions using the cheap yen.