Goldman Sachs: 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 ETF holdings in the future, it will choose to gradually sell these ETFs in the market rather than transfer them to the government, as some have proposed. The BoJ began buying ETFs in 2010 as part of an ultra-loose monetary policy to revive the sluggish economy, a move that lasted 13 years. Although the BoJ stopped buying ETFs last year, it has not announced when or how it will dispose of its holdings of about 37 trillion yen (about $252 billion) in ETF assets, which have a market value of about 70 trillion yen. The BoJ has said that in deciding to reduce these assets, it will be based on three principles: sell at an appropriate price, avoid losses to the central bank, and sell in a way that minimizes market disruption. Goldman Sachs pointed out that the way to meet the three conditions may be to gradually sell on the open market on a small scale.