🇯🇵 Japan Plans to Gradually Sell ETF Valued at $500 Billion but at a Very Slow Pace

🔸 Japan is expected to gradually sell more than $500 billion worth of ETFs held by the central bank.

🔸 The selling speed is very slow, about $2–3 billion per year, meaning it could take over 100 years to sell everything. The slow sale aims to normalize monetary policy, shrink the balance sheet, and avoid market shocks.

🔸 The reason is that for many years of economic stimulus, Japan's central bank has purchased large amounts of ETFs, distorting stock prices and not reflecting the true health of businesses or the economy, as the central bank has become the largest buyer in the market.

🔸 The plan will be immediately halted if a major financial crisis occurs. Japan has successfully used this slow approach before when divesting bank stocks without causing market panic.#JapanToRaiseInterestRatesInMid-to-lateDecember