- Jul. 23, 2019
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- Jul. 18, 2019
(Unofficial Provisional Translation)
Readers are required to refer to the original Japanese text before quoting from this document.
December 26, 2003
Bank of Japan
The Bank of Japan can purchase foreign securities held by Foreign Exchange Fund Special Account, thereafter, FEFSA, with a resale clause, when the Ministry recognizes FEFSA has virtually exhausted room for short-term borrowing under budgetary limitations, and requests the Bank of Japan for purchase operations as indispensable but temporary means of finance until FEFSA becomes accessible to means other than its sales of foreign securities to the Bank of Japan.
10 trillion yen.
Upon the purchase, the Bank of Japan sets the conditions that it will sell the securities back to FEFSA on a certain date within three months after the following day of the purchase.If the resale date has originally been set on or before March 31, 2004, the final resale date can be postponed for no longer than three months after the day following the original resale date.
Regardless of the above, the resale will be done as soon as possible after FEFSA becomes able to finance its operations by any other means.
United States Treasury Notes
The purchase price shall be calculated on the basis of the market value of the foreign securities in U.S. dollar terms multiplied by the Basic Rate of Foreign Exchange applied at the time of purchase.
The resale price shall be the sum of the purchase price and an additional amount based on the length of time from purchase date to resale date. The additional amount will be calculated on the basis of differences between the average bid price and its redemption price in the most recent public auction of Financing Bills (FB).
The Bank of Japan may engage itself in this type of purchase until March 31, 2004.The Bank will, however, stop purchasing if FEFSA becomes able to finance its operations by any means other than sales of foreign securities to the Bank of Japan.