Understanding the term: the operation in which the BOJ supplies U.S. dollars, not yenThe Bank of Japan sometimes lends dollars as well as yen
On October 30, the Bank of Japan published the timetable and schedule of its U.S. dollar funds-supplying operations for November 2026 to March 2027. This is a facility that supplies U.S. dollars to financial institutions, and the dates on which it will be offered are set out in advance. According to the published material, the loan rate is a fixed rate, the auction amount is unlimited (the note says this is within the scope of pooled collateral), and each operation runs for roughly a week. Here is how it differs from yen funds-supplying operations, and how to read the schedule.
- 10:40Auction announcement (the Bank sets out the terms)
- 11:30Bid submission cut-off time
- Around 11:45Notification of the result to each counterparty
- Around 11:45Publication of the result
Key points
- The schedule lists 21 auction dates from November 4, 2026 to March 30, 2027 (in November they are the 4th, 9th, 17th and 24th)
- The loan rate is a fixed rate and the auction amount is unlimited, with a note that this is within the scope of pooled collateral
- Terms range from 6 to 14 days; the longest is the 14-day operation starting December 24, 2026 and ending January 7, 2027
- On the day, the auction is announced at 10:40, bid submission closes at 11:30, and the result is published around 11:45 (all Japan time)
- The exercise and repayment dates are shown in U.S. Eastern time, and the next schedule, running through June 2027, is due to be published at the end of January 2027
What to do in practice
- When the environment for raising dollar funds comes up in the news, bear in mind that the Bank of Japan has a facility that supplies dollars on dates announced in advance
The Bank of Japan usually lends yen to banks and other institutions, or buys government bonds from them. Separately from that, it also has a facility for lending U.S. dollars, the currency of the United States, to banks. On October 30 it published the schedule of when it will do so, covering November 2026 to March 2027. The rate is a fixed rate, and there is no upper limit on the amount, within the scope of proper collateral. Each operation runs for 6 to 14 days.
- November 4The Bank of Japan sets out the terms (auction announcement)
- November 6The dollars are lent out (exercise date)
- November 12The money is repaid (repayment date)
Points
- The Bank of Japan has a facility for lending U.S. dollars, not only yen
- The schedule from November 2026 to March 2027 is set out in advance
- The rate is fixed, and there is no upper limit on the amount, within the scope of collateral
What the words mean
- U.S. dollar
- The currency of the United States, widely used in trade with other countries
- Collateral
- Something you hand over when borrowing money, as security in case you cannot repay
- Bank of Japan (BOJ): Bank of Japan: Timetable and Schedule of U.S. Dollar Funds-Supplying Operations (November 2026-March 2027)
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This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.