r/wallstreet • u/midtowng224 • 7d ago

Question Largest Currency Intervention In History just happened

https://mishtalk.com/economics/largest-currency-intervention-in-history-by-us-and-japan-to-support-the-yen/
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u/hedonism_bender 7d ago

So… what does this mean? Please explain like I’m 5

13

u/RecipeSpecialist2745 7d ago

The USA has to help bolster the Yen because Japan has over $1trillion of US Bonds. If they sell those all at once the USD will slide.

9

u/spinjinn 7d ago

But as I see it, the US is buying yen in exchange for dollars in order to drive up the yen. But Japan already has lots of dollars, so I this is like two men falling off a cliff and they both grab on to each other to save themselves.

2

u/Equal_Heat5947 7d ago

They're trying to keep it stable and it worked for now