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Japan's foreign reserve down for second straight month on weaker euro
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11:00, October 07, 2008

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Japan's foreign exchange reserves fell 851 million dollars from late August to 995.89 billion dollars at the end of September, the Finance Ministry said Tuesday.

It is the second straight month decline since the foreign reserve fell below the 1 trillion mark in August.

The world's second-largest after China's, Japan's foreign reserve dropped on sharp declines in the appraisal value of the nation's euro-denominated assets, the ministry said.

It explained the euro lost ground against the dollar in September and reduced the value of euro assets when calculated in dollar terms.

Japan's foreign exchange reserves consist mainly of securities and deposits denominated in foreign currencies, IMF reserve positions and special drawing rights, and gold.

The statistics show that Japan had 864.22 billion dollars in foreign securities as of Sept. 30, up from 862.29 billion dollars a month earlier.

Foreign currency deposits dropped to 105.01 billion dollars from 108.97 billion in August.

Source:Xinhua



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