Japan’s Foreign Reserves Drop by Record on Market Shakeout, FX Intervention

Banknotes of Japanese yen in this illustration picture taken on Sept. 23, 2022. Florence Lo/Illustration/Reuters

TOKYO—Japan’s foreign reserves fell by a record $54 billion in September, official data showed on Friday, as global market ructions dented the value of foreign bonds and prompted dollar-selling intervention to arrest a steep decline in the yen.

The reserves stood at $1.238 trillion at the end of September, the lowest amount since the end of March 2017, according to the Ministry of Finance (MOF) data.