Japan has enough cash at its disposal for a couple more rounds of yen-buying on the scale of last month's historic intervention, helped by access to a Federal Reserve facility, according to Goldman Sachs.
Of Japan's roughly $1 trillion in U.S. dollar reserves, about $200 billion — likely the size of the July operation — sits in cash or cash equivalents, Goldman estimated.
"They already have at their disposal enough to do another couple rounds of what we just saw," which were near record size, Karen Fishman, a Goldman Sachs Research strategist, said on the bank's Exchanges podcast published late Wednesday U.S. time.
"Realistically, they wouldn't come close to using all of that, but I think that just sort of hits home the point that they have plenty of capacity to keep intervening if they wish," Fishman said. Access to the Fed's facility would theoretically make that full trillion dollars available in liquid form, she added.
