Surplus in Japan Forex Special Account Tops 5 T. Yen

Tokyo, July 31 (Jiji Press)–Surplus in the Japanese government’s foreign exchange special account totaled 5,056.5 billion yen at the end of fiscal 2025, a Finance Ministry report showed Friday. The account, used for foreign exchange market interventions, saw its surplus decrease by 303.8 billion yen from the record high marked the previous year. Still, the surplus was at the second-largest level on record, supported by an increase in investment income reflecting higher foreign interest rates and a weak yen. Of the surplus, 3.13 trillion yen is set to be transferred to the government’s general account in fiscal 2026, with 752 billion yen earmarked for strengthening defense capabilities. The combined surplus in all special accounts hit a record high of 16,154.9 billion yen. Meanwhile, the government’s general-account expenditure for the year that ended in March this year totaled 129,466.1 billion yen, up 6,442.2 billion yen from the previous year. Total revenue amounted to 145,257.9 billion yen, up 9,277.1 billion yen, reflecting a significant rise in tax revenue. The revenue exceeded the expenditure by 15,791.8 billion yen, of which 12,179 billion yen is to be carried over to the general account in fiscal 2026. As a result, the surplus in the general account will total 2,608.8 billion yen, with half to be allocated for redeeming government bonds and the other half for financing an increase in defense spending. END [Copyright The Jiji Press, Ltd.]