Bank of Japan Insider Warns of Yen Carry Trade Unwind Over Global Liquidity Concerns

According to financial commentator Yuto Kanzaki, on Saturday a Bank of Japan insider claimed the central bank has decided to unwind the yen carry trade, a mechanism that allows investors to borrow cheap Japanese capital and deploy it in higher-yielding foreign markets. Kanzaki posted: "Japan's wealth is returning to its homeland. By any means necessary. The Bank of Japan has so decided."

Japan's Finance Minister Satsuki Katayama reinforced this signal earlier this week, stating that authorities may encourage domestic investors and the Government Pension Investment Fund (GPIF) to repatriate foreign holdings. Analysts warn such a reversal could drain liquidity from global stock and crypto markets heavily dependent on Japanese capital flows.