BlockBeats News, June 24th - According to Reuters, the Japanese government is studying the adjustment of the utilization of approximately $13 trillion in foreign exchange reserves to improve asset returns. A growth strategy draft viewed this Wednesday showed that the authorities plan to evaluate public asset management methods, including a special foreign exchange fund account, to explore efficiency improvement paths while adhering to the original purpose of the reserves.

This move is closely related to recent intervention pressure in Japan. In late April this year, after the USD/JPY rate broke above 160, the Japanese government spent around $73 billion to buy the yen in the market. However, this move directly led to the largest monthly decline in forex reserves in May, with a 5.6% decrease. The intervention effect was very limited - during Wednesday's European session, the USD/JPY rate rose again to around 161.70, just a step away from the highest point since 1986 at 161.96.

Japanese Finance Minister Aso Taro has held an online meeting with US Treasury Secretary Yellen to discuss the significant depreciation of the yen and potential intervention measures. Prime Minister Kishida Fumio previously stated that the yen depreciation has made the reserves "shine brightly," and some officials believe that she may intend to use the related gains to support the controversial policy of suspending the food consumption tax.

However, officials remain cautious overall. Sources familiar with the matter pointed out that the core function of the reserves is to provide readily available funds for exchange rate intervention, and a significant reallocation is not feasible. "If blindly pursuing investment returns in a way that goes against the original purpose of the reserves, it will face significant operational difficulties." The specific direction of the adjustment in the current draft has not been disclosed, and the composition of the reserves is believed to be predominantly invested in US Treasury bonds.