How the US Helped Japan Pull Off a $97 Billion Yen Rescue

The US Treasury clarified its role in Japan's $97 billion yen support operation, pushing back on characterizations of the action as a loan. Treasury Secretary Bessent stated that the US purchased yen rather than providing credit, framing the intervention as an asset swap. Treasury filings supported this distinction, showing the Exchange Stabilization Fund held specific holdings in euros and yen at the time. The clarification addressed questions about the nature of US involvement in stabilizing Japan's currency during the period in question.

• The US Treasury bought yen directly in the operation rather than extending credit, structuring it as an asset exchange rather than a lending arrangement.
• Treasury documentation aligned with the asset-swap characterization, undercutting alternative interpretations of how the intervention functioned.