March 2023 Monetary Shifts: Analyzing Bank of Japan’s Current Account Balances and Market Operations

Financial Markets Department, Bank of Japan April 3, 2023

Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations (March, 2023)

The Financial Markets Department of the Bank of Japan has released figures detailing the sources of changes in current account balances and market operations for March 2023. The data reveals a net change in current account balances of 242.044 trillion yen, up from the previous year’s figure of 234.710 trillion yen.

Banknotes saw an increase of 1.7% from the previous year, with the average amount outstanding at 1.220.679 trillion yen. Treasury funds and others saw a significant increase of 114.406 trillion yen compared to 48.387 trillion yen the previous year. However, the Bank of Japan’s loans and market operations, excluding the Loan Support Program, saw a decrease to 85.890 trillion yen, down from 171.989 trillion yen the previous year.

Notably, outright purchases of Japan Government Bonds (JGBs) increased to 110.949 trillion yen, up from 77.237 trillion yen the previous year. Additionally, outright purchases of ETFs reached 370.460 trillion yen, up from 365.658 trillion yen the previous year.

The Loan Support Program saw an increase in the funds-provisioning measure to stimulate bank lending, reaching 42.376 trillion yen, up from 16.417 trillion yen the previous year.

In conclusion, the net change in current account balances at the Bank of Japan for March 2023 demonstrates a general increase in market operations compared to the previous year. The growth in JGB purchases and the Loan Support Program highlight the Bank’s continued efforts to stimulate economic growth and strengthen the foundations of the Japanese economy.

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