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Japan Considers Buying 10 Billion US Treasury Bonds

2011/12/22 9:54:00 12

Japan Buys $10 Billion Treasury Bonds

According to reports, Japan plans to buy $10 billion in China.

National debt

To further diversify its foreign exchange reserves.

To configure

On the same day, Japanese Minister of Finance Ansheng Chun confirmed that the government was considering the above plan and said that the move would help promote economic ties between China and Japan.

But he said the details and decisions need to be finalized by Japanese Prime Minister Noda Kahiko's visit to China from 25 to 26.


As part of the proposed bilateral monetary and financial agreement, the Japanese government may use its foreign exchange fund special account to purchase RMB 780 billion yuan (US $10 billion) Renminbi denominated bonds issued by the Chinese government.

According to the report, the Japanese government's exchange fund special account is now focused on investing dollars, and the government hopes to diversify it.

In addition, the Chinese government's foreign exchange reserves include Japanese bonds, so by holding bonds between each other, China and Japan can more easily exchange the bond market and other areas.

Finance

Developing information.


Japan will also help China cultivate offshore markets for Renminbi denominated bond trading, the report said.

In addition, the two countries will set up a joint environmental investment fund. Japan International Cooperation Bank and Japanese private enterprises will be involved.

It is also expected that leaders of China and Japan may sign on Sunday.

Agreement


 
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