Japan spends $32bn to prop up yen, first forex intervention since 2024

Japan spent at least 5.0 trillion yen (about $32 billion) in the foreign exchange market to support the yen, marking its first such intervention since 2024. The yen was trading near 160 to the dollar, close to its summer 2024 level, after slipping amid the Iran war, rising oil prices, and the widening gap between US and Japanese interest rates. Officials had hinted at possible action, and market participants estimate Thursday’s intervention ranged from 5.0 to 6.0 trillion yen, based on Bank of Japan deposit data and reports from Yomiuri Shimbun, Jiji Press, Nikkei, and AFP.

For Nigerians, this move highlights global currency pressures that can influence oil prices and trade flows. A stronger yen may make Japanese exports more expensive and affect global demand, potentially impacting Nigeria’s oil revenue and import costs. The intervention also underscores how external shocks—such as geopolitical conflict and monetary policy divergences—can ripple through foreign exchange markets affecting the Naira.

The finance minister’s earlier hints and the subsequent reports confirm that Japan is ready to act when the yen weakens significantly. Market watchers note that such interventions are rare and usually signal serious concern about currency volatility. Consider how shifts in major currencies like the yen might affect your foreign exchange exposure, import pricing decisions, or broader economic outlook.

SOURCE: https://www.channelstv.com/2026/05/02/japan-spends-over-30bn-to-prop-up-yen/