Japan has no plan to trim dollar reserve
Japanese Vice Finance Minister Hiroshi Watanabe on Tuesday said Japan didn’t plan to reduce its reserve holdings of dollars anytime soon.
“Japan has no intention to make a shift in foreign reserves,” Watanabe said at the Japan Investment Forum 2007 conference in New York.
Previous yen sales helped push Japan’s foreign-exchange reserves up to $890 billion as of May 31, the second-highest after China’s, and prompted some Japanese legislators to recommend creating a fund that would invest the holdings to increase returns.
Much of Japan’s reserves are in U.S. Treasury securities, making Japanese investors the largest foreign owners of American government debt. Japan held $614.8 billion of Treasuries as of April, according to the U.S. Treasury.
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