Analysts are not optimistic about the Japanese government's plan to intervene in the yen using foreign exchange reserves.

青空银行 Chief Market Strategist Akira Moroga stated: “While the pursuit of higher returns is understandable, such strategies may undermine the safety of foreign exchange reserves, which could be perceived as a negative signal by the market... Ultimately, the purpose of foreign exchange reserves is to uphold the country’s credibility, so they should mainly be allocated to highly reliable and highly liquid assets, rather than higher-risk investments.” Mizuho Research Institute Senior Economist Saisuke Sakai said: “If you want to make effective use of foreign exchange reserves, it means selling off US Treasuries. With US long-term interest rates rising, is this even feasible considering the relationship with the United States?” (Reuters)