Japan has posted a record current account surplus for the month of July. The result was mainly due to financial gains from the weaker yen and higher interest rates abroad.
The Finance Ministry says the current account surplus reached nearly 3.2 trillion yen, or 22 billion dollars. That’s up 3 billion dollars from a year ago.
The current account is a key measure of the country’s trade and investment with the rest of the world. Japan has now logged a surplus for 18 straight months.
The primary income account posted a record monthly surplus of 4.4 trillion yen, or 31 billion dollars, up 6.2 billion dollars year-on-year. Japanese firms earned larger dividends from their foreign units, and bond-holdings yielded higher returns.
On the downside, the trade account was 3.4 billion dollars in the red. That was due partly to a rise in imports of smartphones and pharmaceuticals.
The services account also registered a deficit of around 3.7 billion dollars. A record surplus from brisk inbound tourism was offset by the growing cost of buying foreign-made software, digital tools and other business services.