Bank of Japan Reports Record $14 Billion Payment to Government Amid ETF Gains

May 29, 2024, 11:06 PM

The Bank of Japan (BOJ) has reported significant financial milestones for fiscal 2023. The BOJ paid a record 2.17 trillion yen (approximately $14 billion) to the Japanese government, the highest amount since 1998. This payment was largely derived from gains on exchange-traded funds (ETFs) and bond interest. The total value of the BOJ's ETFs now exceeds 74 trillion yen, with the bank sitting on a record 37 trillion yen in gains from its ETF purchases. Despite these gains, the BOJ faces unrealized losses of 9.43 trillion yen on its Japanese government bond holdings due to rising yields. The BOJ's contributions to the government's coffers, totaling $13.8 billion, were part of an unconventional monetary policy to fight deflation.