Japan's three largest banks—MUFG, Sumitomo Mitsui, and Mizuho—have collectively boosted their foreign currency liquidity buffers to $1.25 trillion. This move comes as the banks anticipate potential sudden demand for U.S. dollars amid escalating tensions related to the Iran war. The increased liquidity is aimed at strengthening their capacity to manage foreign currency needs in a volatile geopolitical environment.

This development was reported on Sunday, August 9th, 2026, by Nikkei Asia, highlighting the proactive measures taken by Japan's financial institutions in response to regional uncertainties.

Sources