BOJ pays record $14bn to government on ETF gains and bond interest

Unrealized losses on Japanese government bonds skyrocket amid higher rates

20240529N BOJ

Payments by the BOJ to the government are seen as a critical source of funds for the country's defense buildup. (Photo by Yuji Murakami)

SHIORI GOSO, Nikkei staff writer

TOKYO -- The Bank of Japan contributed a record 2.17 trillion yen ($13.8 billion) to the government's coffers in fiscal 2023, according to full-year results published Wednesday, though higher interest rates have fueled concerns over the central bank's financial future.

As a general rule, the BOJ's final profits after certain expenses and taxes are paid to the government as the nation's property. Such payments increased around 10% for the year ended March 31.

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