BRICS Influence? Japan Accused of Market Intervention Against US Dollar, Yen Plunge
Is Japan following the lead of BRICS nations in manipulating currency markets? Accusations are mounting that Japan is intervening to prop up the yen against the relentless strength of the US dollar, echoing similar criticisms leveled against BRICS member India. Japan is now accused of following BRICS member India in market intervention to keep the yen from falling against the US dollar. This raises questions about the evolving global economic landscape and the challenges to the established financial order.
Japan's Currency Defense: A BRICS-Inspired Strategy?
The yen has been under intense pressure, prompting speculation about official intervention. The Finance Minister, 12 de sept. de 2025 Finance Minister Shunichi Suzuki formally responsible for the currency gave an interview that seemed intended to dissuade anyone from speculating against the yen. This verbal intervention, coupled with rumored actions in the market, suggests a concerted effort to defend the yen's value.
Dumping US Bonds: A Post-BRICS Shift?
Adding fuel to the fire, reports indicate a significant reduction in Japan's holdings of US Treasury bonds. After BRICS, Japan is now dumping U.S. bonds and mitigating the losses it incurred from adverse interest rate bets. The latest data shows Japan has offloaded $63 billion. This strategic shift could be interpreted as a move to diversify away from dollar-denominated assets and reduce vulnerability to US monetary policy. Such actions align with broader trends seen in some BRICS nations.
The Mechanics of Intervention: A $1.29 Trillion Arsenal
When Japan intervenes, it doesn't hold back. When Tokyo intervenes to support the yen, authorities tap Japan's $1.29-trillion worth of foreign reserves for dollars to sell for yen. This immense firepower allows the Bank of Japan to exert considerable influence on the currency market, at least in the short term. Strategists speculate on the potential magnitude of intervention, with some suggesting, Japanese authorities would probably target a five-yen rally against the dollar if they decide to intervene in foreign exchange markets, according to strategists at some of the.
India's Precedent: The BRICS 'Market Intervention' Accusation
The accusation against Japan isn't entirely new. India, a BRICS member, was the first country to be accused of ‘market intervention’ in the foreign. World One News Page: Thursday Japan is now accused of following BRICS member India in market intervention to keep the yen from falling against the US dollar. This highlights a growing trend of emerging economies taking measures to protect their currencies, potentially challenging the dominance of the US dollar in global trade and finance. Also Read: South African President Makes Huge (this refers to a related article, and will increase session length). The question remains whether Japan's actions represent a similar strategic shift or a more isolated response to specific economic pressures.