TOKYO : Japan's foreign exchange reserves rose to an all-time high of US$908.96 billion at the end of March from the previous record of US$905.05 billion in February, the finance ministry said Friday.

Tokyo's foreign exchange reserves remain the second largest in the world, after China, whose holdings reached US$1.07 trillion at the end of 2006, according to official data from China's central bank.

Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, plus International Monetary Fund reserves, IMF special drawing rights (SDRs) and gold.

Japan's large foreign exchange reserves are the result of years of currency intervention by the government to keep the yen down against the dollar and help exporters stay competitive.

However, Japan's monetary authorities have not intervened since March 2004, allowing the yen to find its own level against the US dollar.