Japan Intervenes In Currency Markets To Support Yen Amid Record Weakness

• Japanese authorities intervened in currency markets to address the yen's weakness, which had risen to nearly 164 yen per dollar, its highest level since 1986.
• Data indicated Tokyo may have sold as much as $58.97 billion to buy yen on Thursday, with further intervention reported on Friday during New York trading hours.
• The Finance Ministry stated it maintains a broad range of tools to support orderly market functioning, including potential use of the Federal Reserve’s standing Foreign and International Monetary Authorities Repo Facility.
• Anoto Group AB’s AGM ratified board members' participation in a USD 5.9 million secured convertible facility, confirming the terms were no less favorable to the company than those for non-conflicted lenders.
• The meeting also authorized an increase in authorized share capital limits to facilitate future equity issuances.

Japanese authorities intervened in currency markets to address the yen's weakness, which had risen to nearly 164 yen per dollar, its highest level since 1986 . Data indicated Tokyo may have sold as much as $58.97 billion to buy yen on Thursday, with further intervention reported on Friday during New York trading hours . To alleviate concerns about the limits of its intervention firepower, the Finance Ministry stated it maintains a broad range of tools to support orderly market functioning .

Specifically, Japan may utilize the Federal Reserve’s standing Foreign and International Monetary Authorities Repo Facility (FIMA), introduced in 2020 . This facility allows Japan to raise dollar liquidity without outright sales of U.S. Treasuries, potentially easing funding pressures associated with large-scale currency interventions . The move signals a strategic approach to managing liquidity without disrupting sovereign debt markets.

How Does The FIMA Repo Facility Aid Intervention Efforts

The utilization of the FIMA repo facility represents a significant shift in how central banks manage currency interventions. By accessing dollar liquidity through the Federal Reserve, Japan can support the yen without depleting its foreign exchange reserves through the sale of U.S. Treasury holdings . This method provides a more sustainable mechanism for defending the currency against extreme volatility.

The facility was introduced in 2020 to provide foreign and international monetary authorities with a reliable source of dollar funding . Its use in this context highlights the growing importance of central bank swap lines and repo facilities in maintaining financial stability during periods of currency stress.

Corporate Governance Updates From Anoto Group AB

In a separate development, Anoto Group AB’s AGM ratified board members' participation in a USD 5.9 million secured convertible facility . The meeting confirmed that the terms offered to the board members were no less favorable to the company than those applicable to non-conflicted participants . This resolution ensures corporate governance compliance while securing necessary financing through internal resources .

The Annual General Meeting of Anoto Group AB (publ) resolved to amend the company's articles of association regarding share capital limits . The limits on share capital in § 4 were adjusted to not less than SEK 130,000,000 and not more than SEK 520,000,000 . Additionally, the limits on the number of shares in § 5 were amended to range from 1,000,000 to 4,000,000, providing the company with greater flexibility for future capital raising activities .

A key resolution involved the specific approval and ratification of the participation of board members Kevin Adeson, Alexander Fällström, Gary Stolkin, Adrian Weller, and Matthew Doerner in the Amended and Restated Secured Convertible Agreement . These directors subscribed to the facility through the set-off of accrued and unpaid directors’ fees . The Board identified a direct personal financial interest resulting from the directors' participation and sought AGM ratification to address the conflict of interest .

The AGM confirmed that this participation is in the best interests of the Company and that the terms offered to the board members are no less favorable to the Company than those applicable to non-conflicted participants . This resolution ensures corporate governance compliance while securing necessary financing through internal resources . The move underscores the importance of transparent governance practices in maintaining investor confidence during capital raising activities.