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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