Goldman Sachs: The Bank of Japan may choose to gradually sell ETFs in the market.

Goldman Sachs said that when the Bank of Japan decides to reduce its holdings of ETFs in the future, it will choose to gradually sell these ETFs on the market, rather than transfer them to the government as some have suggested. Since 2010, as part of its extremely loose monetary policy to revitalize the sluggish economy, the Bank of Japan has been purchasing ETFs, a measure that has lasted for 13 years. Although the Bank of Japan stopped buying ETFs last year, it has not yet disclosed when and how it will dispose of its holdings of around 37 trillion yen of ETF assets, which are worth approximately 70 trillion yen. The Bank of Japan has stated that when deciding to reduce these assets, it will be based on three principles: selling at appropriate prices, avoiding losses for the central bank, and selling in a way that minimizes market disruption. Goldman Sachs pointed out that a method that could meet all three conditions may be to gradually sell in small amounts on the open market.