BOJ’s regular dollar-supplying operation draws offers of $1.47 billion

A businessman walks past the Bank of Japan building in Tokyo

TOKYO (Reuters) – The Bank of Japan’s regular dollar-supplying operation drew offers of $1.47 billion, the central bank said on Tuesday, far greater than its last such operation before markets were roiled by Britain’s vote to leave the European Union.

“Our country has no problem meeting our institutions’ foreign currency needs,” a BOJ official said after the operation.

The central bank offered 8-day dollar funding at 0.870 percent from June 30 to July 8.

The size of the offered take-up was the largest since December 2014 when the central bank supplied $1.528 billion of 10-day dollar cash.

The BOJ typically receives a higher-than-usual amount of bids whenever it offers dollar funding that extends beyond the end of a quarter, though Tuesday’s much greater amount was likely in response to volatile market conditions following British voters’ decision on Thursday to leave the European Union.

The BOJ first offered dollar funds in September 2008 as it joined other central banks in opening the dollar liquidity swap lines with the Federal Reserve after the Lehman meltdown.

Tuesday’s amount, though high compared with recent periods, was still less than the tens of billions of dollars that the BOJ supplied in operations after the collapse of Lehman Brothers in 2008.

(Reporting by Tokyo markets team; Editing by Kim Coghill)