Japan finmin: no change in buying of US Treasuries

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TOKYO, March 26 (Reuters) - Japan does not plan to change its policy of investing the majority of its foreign reserves in U.S. Treasuries, Finance Minister Kaoru Yosano said on Wednesday. Yosano also told the financial committee of parliament's lower house that the government does not have any room to take extraordinary steps in purchases of U.S. Treasuries.

His remark comes amid rising concerns that record government spending in the United States and large liquidity injections by the Federal reserve will create a global glut of dollars and shake the dollar's status as the world's main reserve currency. Yosano also said he did not think it would be appropriate to sell part of Japan's foreign reserve assets in the market.

"Under the current situation, I do not think selling foreign reserves in the market is appropriate as it would could cause unexpected movements in currency markets," he said.

He was answering questions from a lawmaker of the main opposition Democratic Party of Japan, who urged the government to reconsider the amount of foreign reserves it holds from the viewpoint of its exposure to shifts in exchange rates.

Japan's official foreign reserves stood at $1.009 trillion at the end of February, the second-largest in the world after China, government data showed earlier this month. (Reporting by Yuzo Saeki; Editing by Michael Watson)