The Bank of Japan (BOJ) announced it will resume supplying U.S. dollar funds against pooled collateral starting July 24, 2025. In addition to this, the BOJ is conducting securities lending operations to ensure liquidity in the financial markets, offering to lend government debt through spot morning and afternoon operations. The central bank plans to execute a funds-supplying operation worth 800 billion yen across all its offices. These measures come amid indications of a liquidity shortage in Japan, prompting the BOJ to take multiple liquidity operations within a single day and signal further U.S. dollar liquidity provision later in the week.
the multiple BOJ liquidity operations (twice today) and promising more USD liquidity later in the week smell fishy. - BOJ to supply USD funds against pooled collateral from July 24
boj offers to lend govt debt on spot: afternoon offer
Yes, liquidity shortage in Japan must be pretty bad today… https://t.co/7rLUxZY3Qc https://t.co/WsC9xl77Nb