The Group of Seven Governments (G-7) announced today that the nations are increasing their currency reserves as growing risk of currency sell-offs during the next 10 years to detect the potential for more intervention to quell exchange-rate swings in coming years.
G-7 nations may increase reserves from about $200 billion in the euro area and $50 billion each in the U.S., U.K. and Canada. British and Canadian officials have signaled they will raise their stockpiles to meet commitments to the International Monetary Fund. Japan's now top $1 trillion.
Moreover, G-7 decided last month to intervene in a coordinated and cooperative manner into the Forex Market to sell the yen against the dollar to cool the yen's advance after the substantial rise in the Japanese yen against the dollar and other major counterparts after the strongest earthquake that damages the nation on March 11.