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SOURCE ROOM

Please explain the relationship between current accounts at the Bank of Japan and reserve deposits.

Bank of Japan (Tell me! Nichigin)

Claims Supported by This Source

  1. If a financial institution subject to the reserve requirement system holds a current account with the Bank of Japan, the balance of that account is counted as its reserve deposit.
  2. Some institutions not subject to the system, such as financial instruments business operators and money market dealers, also hold current accounts for settlement purposes.

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