Accord to latest BoJ data, foreign currency deposits at domestic banks rose the JPY 26.58T at the end of August, up 8.3% since the start of 2022. The increase in despoits in the eight month period was also the highest since 2015.
The surge could partly be explained by Yen’s depreciation. Yet, the flow into foreign currencies could also be seen as a factor contributing to the persistent decline in Yen’s exchange rate.
