MOF and BOJ Intervene Foreign Exchange
Ministry of Finance (MOF) and Bank of Japan (BOJ) intervened in foreign exchange to stop depreciation of Japanese yen on April 30 th . It is estimated that the BOJ injected 5 trillion yen into the market and yen immediately appreciated by 5 yen against U.S. dollar. Although the intervention worked for deterring further depreciation, the effect of “decisive measure” is not expected to be lasting long, reflecting weakness of Japanese yen. After the BOJ and U.S. Federal Reserve Bureau refrained from changing its monetary policy in current meetings late April, Japanese yen has been depreciated to the level of mid-160 yen against one USD in April 30 th . The MOF was preparing for the intervention of purchasing Japanese yen and sell USD to protect Japanese currency from speculative trades. Minister of Finance, Satsuki Katayama, announced that she was ready for intervention. “We are reaching the time for taking a decisive measure,” said Katayama to the press just before 5 ...