Japan, one of the world's top 10 economies, has sold about 80 tonnes of gold in the state treasury to recover from the economic and trade market damage caused by the Corona disaster.
With Japan currently owing more than 2 times its GDP, the country's economy has been plunged into a recession by the Corona impact, and tax revenues to the state have plummeted.
This has forced Japan to raise more funds to boost its economy.
Health of the people of Japan-
Japan has been forced to spend more on medical and health care, with the government making it its main goal to protect the health of its people. This has created a huge financial need for the Japanese government.
Usually the Japanese government will take money and profits from the Bank of Japan's special account when other funds are needed at such a critical time, as well as the amount the government has to pay after other government institutions close their accounts.
But this is the first time the Japanese government has signed a special agreement with the central bank.
Sale of gold-
Through this new agreement, the Ministry of Foreign Affairs sold its dollar reserves to the Bank of Japan. The proceeds from the sale were used to buy gold from the debt restructuring division in the form of yen.
As a result, debt management currently receives $ 500 billion, or $ 4.84 billion. The $ 4.84 billion is to be used by the Japanese government for various development projects.
Japan Currency Value-
The Government of Japan hopes that this additional debt burden will not be incurred despite the various opinions in the Japanese market for this contract transfer. Economists say this could save Japan's currency from falling.