Japan plans to optimize $1.3 trillion in foreign reserve management to increase returns, while $73 billion intervention raises doubts about its effectiveness, leading to pressure On June 24th, according to Reuters, the Japanese government is studying ways to adjust the use of approximately $1.3 trillion in foreign exchange reserves to improve asset returns. A draft growth strategy reviewed on Wednesday shows that the authorities plan to evaluate public asset management methods, including the special account for foreign exchange funds, and explore ways to improve efficiency without deviating from the original intention of establishing foreign reserves. This move is closely related to Japan's recent intervention pressure. In late April this year, after the US dollar rose above the 160 level against the Japanese yen, the Japanese government spent about 73 billion US dollars to buy yen into the market. However, this directly led to the largest single month decline in foreign exchange reserves of 5.6% in May, and the intervention effect was very limited - on Wednesday, the US dollar against the Japanese yen rose again to around 161.70, just one step away from the highest point of 161.96 since 1986. Japanese Finance Minister Takayuki Katayama has held an online meeting with US Treasury Secretary Bessent to discuss the significant depreciation of the yen and potential intervention measures. Prime Minister Hayao Takashi previously stated that the depreciation of the yen has made the performance of foreign reserves "very impressive", and some officials believe that she may intend to use the related proceeds to support the controversial policy of suspending the collection of food consumption tax. However, officials generally remain cautious. Insiders pointed out that the core function of the Reserve is to provide immediately available funds for exchange rate intervention, and it is unrealistic to adjust the allocation significantly. "If the Reserve blindly pursues return on investment in a way that goes against the original intention of the Reserve, it will face great difficulties in operation." The current draft does not disclose the specific direction of adjustment, and the composition of the Reserve is also considered to be mainly allocated to US treasury bond bonds.