Bank of Japan loads up US$6b in ammunition to combat potential market turmoil

[TOKYO] The Bank of Japan has decided to purchase about US$6 billion in cash from the Ministry of Finance to ensure it has enough ammunition to combat any market disruptions caused by the coronavirus pandemic, the central bank said on Wednesday.

The purchase will be made any time through the end of March next year at the prevailing market exchange rate at the time, the BOJ said in a statement.

The move is "in preparation for smoother execution of the Bank of Japan's operations, such as international financial cooperation and foreign currency supply to financial institutions," the central bank said.

The decision will likely give the BOJ flexibility to address any dollar shortages that domestic financial institutions could face ahead of the year-end and the March closure of Japan's fiscal year.

REUTERS