Bank of Japan Initiates Century-Long ETF Unwind Strategy
The Bank of Japan has charted an unprecedented course to offload its massive ETF holdings over the next century. With ¥37.1 trillion ($238 billion) in book value assets, the central bank plans stealth-like disposals at ¥330 billion annually to prevent market disruption.
This deliberate approach mirrors Japan's successful bank share sales in the 2000s. The Nikkei's recent rally has complicated the strategy, inflating the portfolio's market value to ¥83 trillion while requiring strict adherence to the glacial sales pace.