The Bank of Japan (BOJ) has announced it will supply U.S. dollar funds against pooled collateral starting June 12, 2025, in response to rising market demand for liquidity amid ongoing economic uncertainties. Additionally, the BOJ plans to provide 800 billion yen in securities across all its offices to stabilize financial markets. The central bank currently owns 52% of Japan’s domestic government bond market, which is valued at approximately $7.8 trillion, making it the third-largest government debt market globally. Despite Japan’s high debt-to-GDP ratio of 263%, the BOJ continues to purchase government bonds, supporting government borrowing used to provide cash payments to households to mitigate inflation impacts.
What fiscal dominance looks like: Japan has 263% debt-to-GDP. The central bank keeps buying government bonds, even with no deflation risk. The government hands out thousands in cash to "help households cope with inflation"—paid for by more borrowing, backed by the central bank. https://t.co/00SW15cr3q
‼️This is INSANE: The Bank of Japan owns 52% of its domestic government bond market. Since July, the BoJ has gradually reduced the size of its holdings. The estimated value of Japan's government debt market is $7.8 TRILLION, the world's 3rd largest.👇 https://t.co/ig5yHISNeK
The Bank of Japan has announced plans to provide 800.0 billion yen in securities at all of its offices. This move is aimed at stabilizing the financial markets and ensuring liquidity during these uncertain times. #BOJ #securities #financialmarkets