The finance ministry said Monday that Japan's foreign exchange reserves in August expanded by 19.68 billion U.S. dollars from the previous month to a new high of 1, 042.34 billion dollars. A rise in its holdings of special drawing rights at the International Monetary Fund (IMF) was a key factor behind the hike in the nation's foreign reserves, according to the ministry. In December 2008, Japan's foreign reserves hit a record 1,030. 65 billion dollars due to a rise in the value of its holdings of U. S. Treasury bonds and euro-denominated assets. Japan's foreign exchange reserves, the world's second largest following China, consist mainly of securities and deposits denominated in foreign currencies, International Monetary Fund reserve positions, IMF special drawing rights and gold. 