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LEAD: Sept. foreign reserves dip to $995.89 bil. on falls in euro+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Oct. 7_(Kyodo) _ (EDS: ADDING INFO) Japan's foreign exchange reserves fell $851 million from late August to $995.89 billion at the end of September, staying below the $1 trillion mark for the second straight month, the Finance Ministry said Tuesday. The country's foreign reserves, the world's second-largest after China's, dropped on sharp declines in the appraisal value of the nation's euro-denominated assets, the ministry said. The euro lost ground against the dollar during the month and reduced the value of euro assets when calculated in dollar terms. The appraisal loss offset the reserves' management gains and increases in the value of Japan's holdings of U.S. Treasury bonds caused by lowered interest rates in the country, a ministry official said. According to International Monetary Fund data, China was the world's largest holder of foreign reserves as of the end of April, followed by Japan, Russia, India and Taiwan. Japan's foreign exchange reserves consist mainly of securities and deposits denominated in foreign currencies, IMF reserve positions and special drawing rights, and gold. Ministry data show that Japan had $864.22 billion in foreign securities as of Sept. 30, up from $862.29 billion a month earlier. Foreign currency deposits came to $105.01 billion, down from $108.97 billion in August. Of the deposits, $6.21 billion were held in foreign central banks and the Basel-based Bank for International Settlements, $22.55 billion in Japanese banks and $76.25 billion in foreign financial institutions. Japan had $21.76 billion in gold as of Sept. 30, up from $20.49 billion a month before. The appraisal value of the nation's gold holdings increased as gold prices rose to $884.50 per troy ounce at the end of September from $833.00 in late August. The country had $1.48 billion in IMF reserve positions, down from $1.55 billion in August, and $3.05 billion in IMF special drawing rights compared with $3.07 billion a month earlier. Other reserve assets came to $362 million in September, down from $368 million in August. The ministry also noted that Japan had $29.62 billion in late September as a result of the Bank of Japan's first-ever dollar-fund supply operation in line with coordinated emergency action by six major central banks to ease the pressure on global financial markets. Copyright ? 2008 Kyodo News International, Inc. |