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

Tokyo (ANTARA) - Japan’s foreign exchange 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 stated on Friday.

Data released by the ministry shows that official reserve assets stood at 1.31 trillion US dollars (1 US dollar = Rp18,039) at the end of May, a decrease of 77.11 billion US dollars from the end of April. This represents the largest decline, both in terms of percentage and volume, since comparable data became available in April 2000.

Previous data from the ministry regarding currency market interventions during the period from 28 April to 27 May shows that Japanese authorities spent a record 11.73 trillion yen (1 yen = Rp112) to curb the depreciation of the yen.

The ministry did not disclose the specific details of transactions related to the currency intervention, but it is highly likely that several foreign assets were sold to obtain US dollars to fund yen-buying operations, according to Kyodo News.

Currency movements fluctuated on 30 April, when the yen surged to 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, prompting assumptions that state authorities had launched further interventions.