According to Goldman Sachs estimates, out of Japan's current total foreign exchange reserves of about 1 trillion US dollars, about 200 billion US dollars are cash and cash equivalents. This scale is basically the same as the amount of historic exchange rate intervention by the Bank of Japan in July of this year. Relying on the support of the Federal Reserve's instruments, the upper limit of intervention funds that Japan can flexibly mobilize has been further raised, building a solid financial foundation for subsequent market protection operations. “Japan's current liquidity is sufficient to carry out several more rounds of large-scale intervention comparable to previous records.” Karen Fishman, a strategist at Goldman Sachs Research Institute, said bluntly, “In reality, Japan will not run out of all of this money, but this is enough to show that as long as Japan is willing, it has sufficient capacity to continue to intervene.” She added that, in theory, with the help of the Federal Reserve's tools, all $1 trillion of reserves could be converted into working capital.

According to Goldman Sachs estimates, out of Japan's current total foreign exchange reserves of about 1 trillion US dollars, about 200 billion US dollars are cash and cash equivalents. This scale is basically the same as the amount of historic exchange rate intervention by the Bank of Japan in July of this year. Relying on the support of the Federal Reserve's instruments, the upper limit of intervention funds that Japan can flexibly mobilize has been further raised, building a solid financial foundation for subsequent market protection operations. “Japan's current liquidity is sufficient to carry out several more rounds of large-scale intervention comparable to previous records.” Karen Fishman, a strategist at Goldman Sachs Research Institute, said bluntly, “In reality, Japan will not run out of all of this money, but this is enough to show that as long as Japan is willing, it has sufficient capacity to continue to intervene.” She added that, in theory, with the help of the Federal Reserve's tools, all $1 trillion of reserves could be converted into working capital.