Japan’s foreign reserves experienced a record-breaking decline in May 2026, falling by $77.11 billion to reach a total of $1.31 trillion. This represents the steepest drop since records began in April 2000 and leaves the reserves at their lowest level since July 2025.
The sharp decrease is largely attributed to Tokyo’s aggressive efforts to stabilize the yen. During the period leading up to May 28, Japanese authorities spent a record 11.73 trillion yen (approximately $73.6 billion) in market interventions to prop up the currency after it weakened past 160 per dollar.
Key figures at a glance
The foreign reserves for May 2026 stood at $1.31 trillion, following a historic monthly decline of $77.11 billion. This drop was fueled by an intervention amount of 11.73 trillion yen, which is approximately $73.6 billion, utilized between April 28 and May 27 to stabilize the currency.
As the yen continues to trade near the 160 level against the U.S. dollar, market participants remain on high alert, scrutinizing these figures to gauge Tokyo’s capacity and willingness to continue supporting the currency in the face of ongoing economic pressures.
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