Japan's foreign exchange reserves contracted by US$1.604 billion to US$1.00935 trillion in February from a month earlier, the finance ministry said on Friday.

Possessing the world's second largest foreign reserves after China, Japan holds securities and deposits denominated in foreign currencies, IMF reserve positions and special drawing rights, and gold.

Statistics show that Japan had US$892.34 billion in foreign securities and US$23.42 billion in gold at the end of February, up from US$890.77 billion and US$22.62 billion a month earlier, respectively.

The world second largest economy also held US$87.81 billion in foreign currency deposits and US$2.53 billion in IMF reserve positions, down from US$91.68 billion and US$2.58 billion respectively.

(Xinhua News Agency March 6, 2009)