Trends in the Money Market in Japan*1 -- Results of the Tokyo Money Market Survey (August 2023) --
- *1This is an English translation of Japanese original released on October 6, 2023.
December 8, 2023
Financial Markets Department
Bank of Japan
Overview of the Tokyo Money Market Survey
Introduction
The Financial Markets Department of the Bank of Japan (the Bank) has conducted the Tokyo Money Market Survey since 2008 to understand developments in the Japanese money market. Initially, this series of surveys was conducted every other year. However, to observe market trends more precisely, the Bank decided to conduct the survey annually, beginning with the 2013 survey. In August 2023, the 14th survey in the series was carried out (the survey was conducted as of the end of July 2023).
As with the previous surveys, this survey covers eligible counterparties in the Bank's market operations, as well as other major participants in the money market. The number of respondents in the survey was 386 (with a response rate of 100 percent).
The Bank intends to capture comprehensively and from various angles the situations and structural changes in the money market, utilizing the results of this survey as well as the results of the Bond Market Survey. The Bank will continue to enhance dialogue with market participants by taking advantage of the Meeting on Market Operations and the Bond Market Group Meeting to actively support the relevant parties in their efforts to enhance Japanese financial markets, including the money market. The Bank intends to contribute significantly to such endeavors in its capacity as Japan's central bank.
Overview
The amounts outstanding in the money market decreased from the previous year on the cash borrowing side, but remained unchanged on the cash lending side.
On the borrowing side, transactions with the Bank decreased from the previous year, with the termination of the Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19). On the lending side, repo transactions increased due to growing bond demand, particularly by non-residents. Meanwhile, yen lending through FX swaps decreased, as precautionary demand for dollar funds resulting from factors such as geopolitical risks levelled off.
With respect to the functioning of the money market (as of the end of July 2023), around 90 percent of respondents answered that it remained "mostly unchanged" from the previous year.
The Bank intends to continue to closely monitor the developments in the money market through day-to-day monitoring activities, the implementation of the Tokyo Money Market Survey, and dialogue with market participants.
Notice
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Financial Markets Department, Bank of Japan
E-mail : post.fmd35@boj.or.jp
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Inquiries
Market Infrastructure Group, Market Infrastructure Division, Financial Markets Department
E-mail : post.fmd35@boj.or.jp