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Japan central bank loses billions on ETFs, may face annual loss

From reuters.com

The Bank of Japan on Tuesday acknowledged unrealized losses of 2-3 trillion yen ($18-$27 billion) on its holdings of exchange-traded funds (ETFs) after a rout in Japanese stock prices, raising the prospect it could post an annual loss this year.Analysts said a loss - highly unusual for a central bank - would be the first by the BOJ in nearly 40 years and could constrain the bank’s attempts to prop up market sentiment with continued aggressive stock purchases. The financial health of the BOJ, whose fiscal year ends next Tuesday, is increasingly tied to Japanese stock prices after the central bank, which already holds ... (full story)

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  • Category: Fundamental Analysis