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Bank of Japan's unrealized loss on gov't bonds hits record 71 bln USD

TOKYO
2023-11-29 11:06

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TOKYO, Nov. 29 (Xinhua) -- The Bank of Japan (BOJ)'s unrealized losses on its holdings of Japanese government bonds swelled to a record high of 10.5 trillion yen (71.4 billion U.S. dollars) at the end of September, according to its latest financial statement.

The figure marked the BOJ's third straight half-year paper loss on government bonds and the largest since it began valuing them under its current method in 2004, exceeding the previous record of 874.9 billion yen (5.95 billion dollars) logged in September 2022, the central bank said Tuesday.

The surge in the latent loss, up from 157.1 billion yen (1.07 billion dollars) six months ago, came as rising yields dragged down bond prices.

As the BOJ adopts an accounting method based on the assumption that its bonds are held to maturity, the paper losses based on market prices have no bearing on its actual income. Still, any market worries about the central bank's financial standing could have an impact on currency markets and interest rates.

Even if the central bank faces an increase in such a loss, the situation will not affect its policy operations, BOJ Governor Kazuo Ueda has said.
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