Japan's three largest banks—MUFG, Sumitomo Mitsui, and Mizuho—have collectively increased their foreign currency liquidity buffers to $1.25 trillion. This move is in anticipation of sudden demand for U.S. dollars amid ongoing tensions related to the Iran conflict. The bolstered liquidity is intended to ensure financial stability and readiness in the face of potential market volatility.

These developments were reported by Nikkei Asia on August 9, 2026, highlighting the banks' proactive measures in response to geopolitical risks affecting Asia and the broader global economy.

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