Japan's FX reserve account logs $31 billion surplus in FY2025

TOKYO, July 31 : Japan posted a surplus of $31 billion from a special government account for foreign exchange reserves in the fiscal year that ended in March, the second-highest on record, thanks to a weaker yen boosting its yen returns on foreign assets.The surplus from the special account, which manages foreign exchange reserves for currency market interventions, totalled 5.06 trillion yen ($31 billion), second only to the 5.36 trillion yen logged in fiscal 2024, the Finance Ministry said on Friday.Assets in the account, invested mainly in U.S. Treasuries, are funded through yen-denominated financing bills, with interest costs more than offset by income from Treasuries thanks to the wide U.S.-Japan interest rate differential.The yen's depreciation also boosted the value of returns in yen