Bloomberg’s to the news according to Bank of Japan (BoJ) is planning to sell exchange traded funds (ETFs) worth trillions of yen. The plan marks a new era in the history of the country’s monetary policy. The bank is considering starting sales in January and the process is expected to proceed extremely slowly to avoid creating fluctuations in the markets. As of the end of September, the market value of the funds was 83 trillion yen (about 534 billion dollars) and the book value was 37.1 trillion yen.
A Sales Plan That Will Exceed a Century
The board decision taken in September is the BoJ’s ETF It expects to divest its portfolio at a rate of approximately 330 billion yen per year. If this pace continues, it is estimated that it will take 112 years to complete the process. Authorities aim to carry out the sales without being noticed in the markets, as in the sales of shares purchased from banks in trouble in the 2000s. The sales program at that time lasted ten years and was completed without any deterioration in financial stability.
in recent years japan stock exchangeThe strong rise in ETFs significantly increased the market value of ETFs in the BoJ’s portfolio. This makes the bank’s long-term strategy more complex and requires sales to continue at the planned pace.
Priority is to Maintain Market Balance
According to sources, the central bank plans to carry out sales at a steady monthly pace. BOJ‘s main goal is to minimize market reaction and maintain price stability. However, in 2008 Global Financial Crisis It is stated that sales may be stopped in case of a similar shock.
As a result of the tender held for the management of the funds Sumitomo Mitsui Trust Bank He was chosen as the executive of the sales process. The bank will be responsible for carrying out transactions without harming market liquidity. Experts say that with this long-term plan, the BoJ aims to both reduce the balance sheet risk and japanese stock marketHe states that he aims to gradually end the corporate dependency that has been going on for years.
The repercussions of the BoJ’s move on the cryptocurrency market are also being closely monitored. experts Bitcoin 
$89,589.87 And altcoinHe emphasizes that ‘s will react according to the reaction of global markets.
