Bank of Japan Has an 8.7 Trillion Yen Gap in Balance Sheet
- Gap between book value of JGBs and face value at a record
- BOJ wrote down 874 billion yen in losses last fiscal year
Why Does the BOJ Have an $84B Gap in Its Balance Sheet?
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There’s an 8.7 trillion yen ($84 billion) gap between the value of government bond holdings on the Bank of Japan’s balance sheet and their face value.
While not an immediate problem because the BOJ’s income can cover the losses, the widening gap raises questions about the sustainability of the central bank’s bond purchases, which Governor Haruhiko Kuroda has said could be expanded.