The Bank of Japan published the results of current account balance factors and market operations for August 2025.
Current Account Balance Changes In August 2025, current account balances decreased by ¥798 billion (compared to an increase of ¥1,958.7 billion in the same month last year). The main factors contributing to this change were:
Banknote Factors: -¥76.8 billion (previous year: ¥204.4 billion) Banknotes outstanding decreased 2.0% year-on-year, continuing the declining trend since February. Both end-of-month and monthly average outstanding amounts were down approximately 2% from the previous year, indicating reduced cash demand.
Treasury and Other Factors: -¥4,430.5 billion (previous year: -¥4,113.8 billion)
- General fiscal fund supply: ¥5,818.7 billion (impact of tax revenues and expenditures on liquidity)
- JGB issuance/redemption: ¥10,823 billion absorbed through issuance, ¥2,419.5 billion supplied through redemption, net absorption of ¥8,403.5 billion
- Treasury bills: ¥23,850.6 billion issued, ¥24,699.9 billion redeemed, net supply of ¥849.3 billion
- Foreign exchange funds: ¥4.1 billion supply
- Others: ¥2,699.1 billion absorption
Market Operations Response To address the funding shortage (¥4,507.3 billion), the BOJ conducted the following market operations:
- JGB purchases for fund supply: ¥3,605.3 billion (previous year: ¥5,263 billion)
- CP purchase reductions: ¥108.1 billion (redemption excess)
- Corporate bond purchase reductions: ¥77.9 billion
- Other operations: Continued pooled collateral operations, disaster area financial institution support operations
Economic Significance and Policy Implications This statistic serves to ensure transparency in the BOJs monetary policy operations and provide information to markets. The decrease in JGB purchases compared to the previous year may reflect changes in adjustment methods during the monetary policy normalization process. The continued decline in banknote outstanding suggests changes in cash demand structure due to advancing cashless payments.
This monthly data serves as important foundational material for financial institutions fund management, trading strategies of short-term market participants, and monetary policy analysis.