Global| Apr 12 2004Japan Piles Up Reserves As Its Current Account Balance Improves
Summary
In February, Japan's current account surplus, on a seasonally adjusted basis, was virtually unchanged from the previous month, but was up by 535.6 million yen from February, 2003. On a year over year basis, there were increases in the [...]
In February, Japan's current account surplus, on a seasonally adjusted basis, was virtually unchanged from the previous month, but was up by 535.6 million yen from February, 2003.
On a year over year basis, there were increases in the balances of good, services, income and current transfers. The improved current account balance has led to only a relatively moderate appreciation of the yen. Foreign exchange reserves, on the other hand, have skyrocketed. In the first two months of this year, reserves were up over $100 billion and are estimated to be up a further $ 50 billion in March.
| (Seasonally adjusted, 100 million Yen) |
Feb 04 | Jan 04 | Feb 03 | M/M Chg |
Y/Y Chg |
2003 Mo Ave | 2002 Mo Ave | 2001 Mo Ave |
|---|---|---|---|---|---|---|---|---|
| Current Account Balance | 16854 | 16852 | 11498 | 2.0 | 5356 | 13303 | 11824 | 8886 |
| Goods Balance | 11766 | 11858 | 9906 | -92 | 1860 | 10320 | 9850 | 7178 |
| Services Balance | -2824 | -3187 | -3930 | 363 | 1106 | -3223 | -4395 | -4403 |
| Income Balance | 8080 | 8488 | 6514 | -400 | 1566 | 6940 | 6945 | 6934 |
| Current Transfers Balance |
-168 | -306 | -992 | 138 | 824 | -733 | -575 | -823 |
| Change in Reserves | 36200 | 72486 | 7303 | -36286 | 28890 | 17940 | 4830 | 4113 |
| Yen/$ exchange rate | 109.0 | 105.97 | 117.75 | -3.03 | 8.75 | 107.10 | 119.90 | 131.80 |
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