Goldman Sachs: With a trillion-dollar reserve in hand, Japan can replicate multiple rounds of "epic foreign exchange interventions."

According to Goldman Sachs, within Japan's current total of approximately $1 trillion in foreign exchange reserves, about $200 billion is in cash and cash equivalents, a scale that is roughly equivalent to the volume of the Bank of Japan's historic currency intervention in July of this year. With support from the Federal Reserves tools, Japan's upper limit for flexible intervention funding has been further enhanced, laying a solid financial foundation for subsequent market support operations. "The liquid funds currently held by Japan are sufficient to conduct several rounds of large-scale interventions comparable to those of previous record levels," stated Goldman Sachs Research strategist Karen Fishman bluntly. "In reality, Japan will not exhaust this funding completely, but it demonstrates that as long as Japan is willing, it has more than enough capacity to continue interventions." She added that theoretically, with the help of the Federal Reserve's tools, all $1 trillion of reserves could be converted into liquid funds.