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Finance

Foreign central banks profit from BOJ's negative interest rates

Policy stings domestic investors while overseas players buy JGBs, cash in on yield spreads

The BOJ's negative interest rate policy keeps bond yields in negative territory, imposing a heavy burden on Japanese financial institutions.

TOKYO -- Since the Bank of Japan introduced negative interest rates in February 2016, Japanese commercial banks have been paying the central bank to park their excess cash.

While Japanese banks are wailing over heavy financial burdens due to the negative interest rate policy, or NIRP, some foreign central banks are earning easy money off it.

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