Japan’s three largest banks—MUFG, Sumitomo Mitsui, and Mizuho—have collectively boosted their foreign currency liquidity buffers to $1.25 trillion as of August 9, 2026. This move is in anticipation of sudden demand for U.S. dollars amid ongoing tensions related to the Iran war. The increased liquidity is aimed at ensuring financial stability and readiness to meet unexpected dollar funding needs.

The development reflects the banks’ proactive measures in response to geopolitical uncertainties affecting Asia and the broader global economy.

Sources