TOKYO (TR) – The Japanese government and the Bank of Japan pumped a staggering 11.7 trillion yen into the foreign exchange market over the past month in a desperate, and seemingly futile, bid to stop the currency’s rapid freefall, reports TBS News (May 29).
According to figures released by the Ministry of Finance on Friday, authorities conducted yen-buying and dollar-selling operations totaling 11.73 trillion yen between April 28 and May 27. The massive expenditure shatters all previous records for a single month of market intervention.
In a dramatic move to curb the plunging yen, the government stepped into the market on April 30 for the first time in nearly two years. The aggressive tactic temporarily shocked the market, forcing the dollar down from the upper 160-yen range to the mid-155-yen mark — a volatile swing of more than five yen in just four hours.
Intermittent interventions continued through the Golden Week holidays, with an estimated 4 to 5 trillion yen injected into the market. However, the costly maneuvers provided only temporary relief. Driven by external pressures such as surging crude oil prices, the yen’s relentless slide has continued unabated.
The currency has already slumped back down to the 159-yen level against the dollar. A month after the historic intervention, the yen’s actual net gain has shrunk to a mere one yen.
Since 2022, the government and the central bank have blown over 36.2 trillion yen on currency interventions. Yet, the massive spending has failed to address the root causes of the weak currency, serving as nothing more than an expensive band-aid for the dying yen.
