BRICS: Japan dumps $63 Billion worth U.S. Bonds

After BRICS, Japan is now dumping U.S. bonds and mitigating the losses it incurred from adverse interest rate bets. The latest data shows Japan has offloaded $63 billion worth of U.S. and European sovereign bonds by March 2024. The U.S. bonds sale represents nearly one-sixth of the Central Bank of Japan’s portfolio.

Japan is following in the footsteps of the BRICS alliance, which has been dumping U.S. Treasury bonds for more than a year. Offloading the bonds was the only way for Japan to reduce their losses on the interest rate cut bets.

The Bank of Japan anticipates reporting a net loss of 1.5 trillion yen, equivalent to nearly $9.49 billion for the current fiscal year. The previous net loss estimate was placed at 500 billion yen, but the losses have now tripled in value.

Japan is under tremendous pressure as the yen has fallen to a 34-year low against the U.S. dollar. Therefore, Japan is replicating BRICS by dumping U.S. and European sovereign bonds in the market.

(Watcher Guru)