Bank of Japan Accelerates ETF Sales to Boost Revenue

The Bank of Japan announced Friday that it will accelerate the sale of its exchange-traded fund (ETF) holdings, increasing annual sales from 330 billion yen to 860 billion yen on a book-value basis starting in January. This policy shift reduces the estimated time required to unwind the holdings from 112 years to approximately 43 years.

Because the central bank transfers surplus earnings to the government, the increase in realized capital gains is expected to raise non-tax revenue for the state. Finance Minister Satsuki Katayama stated that officials will determine how to allocate these additional funds during the budget process.

The resulting revenue may help Prime Minister Sanae Takaichi finance several policy commitments. These include increased defense spending, a 14-year investment programme, and a two-year reduction in food consumption taxes.