Koizumi: Japan must consider diversifying reserves

Japanese Prime Minister Junichiro Koizumi said on Thursday 11 March that his country "in general" needs to consider diversifying its foreign currency reserves, the world's largest.

A finance ministry official later said Japan has no plan to shift its $820.5 billion of reserves, comments repeated by Finance Minister Sadakazu Tanigaki.

Koizumi said in response to a question at parliament ``it's necessary to diversify the investment destinations'' of reserves while ``considering what's profitable and

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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