Japanese Yen Falls Below Turkish Lira in April as BoJ Buys ¥3 Trillion Bonds Monthly
Updated
Updated · robinjbrooks.substack.com · May 28
Japanese Yen Falls Below Turkish Lira in April as BoJ Buys ¥3 Trillion Bonds Monthly
3 articles · Updated · robinjbrooks.substack.com · May 28
April 2026 marked a new low for the yen’s real effective exchange rate, which fell below the Turkish lira — a rare benchmark for chronic currency weakness.
¥3 trillion in monthly Bank of Japan bond purchases is the report’s main driver: by suppressing yields below market levels, the BoJ is pushing the yen weaker even as long-term yields keep drifting higher.
Japan’s bond market looks deeply distorted, with 30-year government yields roughly matching Germany’s despite Japan’s public debt at 240% of GDP versus Germany’s 65%.
The report argues Japan has been in a slow-motion "Liz Truss"-style crisis since 2024 and says selling state financial assets could cut debt, ease yield pressure and support the yen.
Net debt of about 130% of GDP shows those assets exist, but entrenched interests are blocking change, leaving further yen weakness likely before policy shifts.
Will new corporate laws finally force Japan's hand, compelling a sale of state assets to save the yen?
Could the unwind of Japan's 'yen carry trade' trigger the next major global financial shock?
With a clear solution available, what powerful interests are stopping Japan from selling assets to avert its debt crisis?