TOKYO, Reuters – Japan’s total external assets reached a record in 2021. This allowed Japan to retain its top position for 31 consecutive years. The Ministry of Finance (MOF), on Friday said that Japan was maintaining its position of the largest creditor. It also maintained its position of being the highest-rated country in terms of net debt. These figures likely helped the yen maintain its status as a secure-haven asset despite recent weakness.

At the end of 2013, the net assets of the Japanese government and businesses stood at 411 trillion yen (or $3.24 trillion). This is an increase of 5.6 billion yen, which was the largest ever.

It was due to an increase in foreign direct investments and an 11 percent gain in dollar-based yen assets.

These data may ease concerns regarding the recent drop in the currency to 131 yen per dollar (above the two-decade mark), which have raised questions about Japan’s purchasing ability.

As of the end of 2021, Japan’s external net assets had increased 1.3 times to surpass those of Germany (the world’s No.2 lender), followed by Hong Kong, China and China.

Japan’s Gross External Assets stood at 1,249.9 Trillion Yuen. Japan’s external debt was 838.7 Trillion. Japan’s Net External Assets grew to 411.2 Trillion.

Data from separate sources confirmed that Japan’s current balance surplus was 15.5 trillion Japanese yen in 2021. This is 1.2% less than a year ago. Primary income gains of 20.5 trillion Yuen added to the trade surplus of 1.7 billion yen.

Data showed that Japan’s substantial income gains through overseas investment outweighs its weak trade balance. These facts helped to maintain the status of the yen as a currency safe haven.

(This article corrects the gross external assets/debt figures at paragraph 6).

($1 = 126.8400 yen)