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Japan's Government Pension Investment Fund (GPIF) is bolstering global market liquidity, according to Atsushi Mimura, Japan's top currency diplomat. Mimura stated this at a panel on demographics and ageing population during the IMF meetings in Bangkok. Japan's proactive measures to address its rapidly ageing population, such as establishing universal pensions and healthcare systems in 1961, have had positive side effects, including a very healthy workforce and a dramatic accumulation of pension funds.

Currently, the GPIF is the world's largest institutional investor. Mimura, who is Japan's vice finance minister for international affairs, noted that these early policies not only helped Japan respond to population ageing more effectively but also provided numerous positive by-products. GPIF reported a record quarterly investment gain in the April-June quarter, sparking discussions about whether the world's largest pension fund should reconsider its investment strategy.

Analysts believe any such change in its portfolio could have significant repercussions for global financial markets.