Analytical Reviews

Get the latest economic news from ForexMart, including updates on the financial market, central bank policy announcements, financial indicators, and other relevant news which can impact the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Japan may face the threat of a $3 trillion crisis


March, 31 2023
watermark Economic news

The former head of the Bank of Japan, Haruhiko Kuroda, changed the direction of the global market in 2016, when he brought down offshore investments worth $3.4 trillion to the market in order to reduce bond yields. 


The new head of the Japanese central bank, Kazuo Ueda, is likely to change the current course of things, which may cause some shock in the global economy. Investors are cautiously preparing for the inevitable end of the decade of ultra-low interest rates, as Ueda may have no choice but to put an end to the experiment with «easy money» against the background of rising interest rates in other countries, which threatens global financial stability.


At the same time, the stakes are quite high: Japanese investors are the largest foreign holders of US government bonds and own almost everything – from Brazilian debt securities to European power plants and packages of American risky loans.


Experts note that the rising cost of borrowing in Japan threatens to increase fluctuations in global bond markets, which are intensified by the actions of the US Federal Reserve System to combat inflation and fears of a new credit crisis. Against this background, the tightening of the monetary policy of the Bank of Japan is likely to strengthen control over creditors in Japan after the recent banking turmoil in the United States and Europe.


Recall that the Bank of Japan has bought Japanese government bonds worth 465 trillion yen ($3.55 trillion) since Kuroda implemented quantitative easing 10 years ago, which led to lower yields and caused unprecedented distortions in the sovereign debt market. As a result, local funds sold 206 trillion yen worth of securities during this period in search of more profit from other sources.


コメントする

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.