Japan's Finance Ministry said on Tuesday that Japan had lost its position as the world's largest creditor for the first time in 34 years, replaced by Germany, even though Japan's net foreign asset balance rose to a record high, partly due to the yen's depreciation.
As of the end of last year, Japan's net foreign asset balance increased by 12.9% year-on-year to 533.05 trillion Japanese yen (3.7 trillion US dollars), breaking through 500 trillion yen for the first time, but still below Germany's 569.65 trillion yen.
The Ministry of Finance said that the depreciation of the yen boosted the value of Japan's foreign currency assets, including stocks, bonds and other assets when converted into local currencies. It also added that Germany benefited from its large current account surplus. Driven by domestic financial institutions and trade companies' direct investment in the U.S., Japan's total foreign assets grew by 11.4% to 1,659.22 trillion yen. Foreign liabilities increased by 10.7%, reaching 1,125.97 trillion yen. (International Finance News)
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