Japan's Foreign Reserves Record Largest Monthly Drop in May 2026

Tokyo - Japan’s foreign reserve assets fell by 5.6 per cent in May compared to the previous month, marking the largest monthly decline ever recorded, the Ministry of Finance said on Friday. Data released by the ministry showed official reserve assets stood at 1.31 trillion US dollars at the end of May, down 77.11 billion US dollars from the end of April, representing the largest drop in both percentage and volume terms since comparable data became available in April 2000. Earlier data from the ministry on currency market intervention during the period of 28 April to 27 May indicated Japanese authorities had spent a record 11.73 trillion yen to stem the currency’s depreciation. The ministry did not disclose specific transaction details related to the currency intervention, but it likely sold some foreign assets to obtain US dollars to finance the yen-buying operations, according to Kyodo News. Currency movements fluctuated on 30 April, when the yen surged into the 155 zone from the upper 160 range. The yen subsequently weakened, but on 1 May, 4 May, and 6 May, the currency strengthened rapidly from the 157 zone to the 155 range, triggering speculation that authorities launched further intervention.