TOKYO, Nov. 29 (Xinhua) — The Bank of Japan (BOJ)’s unrealized losses on its holdings of Japanese authorities bonds swelled to a document excessive of 10.5 trillion yen (71.4 billion U.S. {dollars}) on the finish of September, in keeping with its newest monetary assertion.
The determine marked the BOJ’s third straight half-year paper loss on authorities bonds and the most important because it started valuing them underneath its present technique in 2004, exceeding the earlier document of 874.9 billion yen (5.95 billion {dollars}) logged in September 2022, the central financial institution stated Tuesday.
The surge within the latent loss, up from 157.1 billion yen (1.07 billion {dollars}) six months in the past, got here as rising yields dragged down bond costs.
As the BOJ adopts an accounting technique based mostly on the belief that its bonds are held to maturity, the paper losses based mostly on market costs don’t have any bearing on its precise revenue. Still, any market worries in regards to the central financial institution’s monetary standing might have an effect on foreign money markets and rates of interest.
Even if the central financial institution faces a rise in such a loss, the scenario is not going to have an effect on its coverage operations, BOJ Governor Kazuo Ueda has stated.