🇯🇵 Japan Still Has Firepower to Defend the Yen
Goldman Sachs says Japan has significant capacity for further yen intervention, backed by roughly $1 trillion in foreign-exchange reserves.
However, not all reserves are immediately deployable, and access to dollar liquidity through the Fed is not the same as receiving $1 trillion in cash.
The key question: How aggressively will Japan use its reserves if yen weakness continues?
#USJulyCPI&PPIDueThisWeek
Goldman Sachs says Japan has significant capacity for further yen intervention, backed by roughly $1 trillion in foreign-exchange reserves.
However, not all reserves are immediately deployable, and access to dollar liquidity through the Fed is not the same as receiving $1 trillion in cash.
The key question: How aggressively will Japan use its reserves if yen weakness continues?
#USJulyCPI&PPIDueThisWeek