BOJ draws offers of $1.47 billion
The Bank of Japan’s regular greenback-supplying operation drew offers of up to $1.47 billion, the major bank announced on Tuesday. That’s far greater than the previous operation before the financial markets were affected by the UK’s vote to escape from the EU.
A BOJ representative told that his country doesn’t have any problems with meeting their institutions' foreign currency needs.
Japan’s major bank offered 8-day greenback funding at 0.870% from June 30 to July 8.
The size of the offered take-up appeared to be the largest since December 2014 when the major bank supplied up to $1.528 billion of 10-day dollar cash.
The BOJ typically gets a higher-than-usual amount of bids whenever it provides greenback funding, which extends beyond the end of the quarter, although Tuesday's much greater amount was a definite response to volatile market conditions following British voters' verdict on Thursday to leave the EU.
The BOJ first offered greenback funds in September 2008 because it joined other major banks in opening the greenback liquidity swap lines with the Fed after the Lehman meltdown.