Joint US-Japan FX intervention could advance BoJ tightening
Experts say tighter policy needed to lock in yen gains over the long term
The first joint US-Japan foreign exchange intervention in nearly 30 years occurred last week, and experts tell Central Banking that this may bring forward the Bank of Japan’s next policy tightening move, which would be needed to lock in the yen’s gains over the long term.
Japan and the US confirmed today (August 3) that they had jointly purchased yen on July 31 – the first time in nearly three decades – and both said they were ready to do this again if needed. The confirmation followed media
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Foreign Exchange
BoJ holds as yen and won both rise on suspected interventions
Japan’s central bank more hawkish than at previous meetings as it keeps rates at 1%
Indonesia’s foreign reserves increase despite interventions
Central bank attributes slight rise to higher tax revenues and says holdings are sufficient
More than $1.4tn of daily FX trades face Herstatt risk – BIS study
Only around a third of transactions fully eliminate settlement risk by using PvP
DRC’s FX upgrade part of efforts to boost currency – governor
Wameso says central bank is pursuing modernisation agenda to strengthen the financial system
Edna Villa on the BSP’s shift to a risk-return SAA
Philippines’ reserves head speaks about diversification, climate risks, daily stress-testing and operational technology reforms
Malawi FX crisis due to structural weakness, says deputy governor
Central bank has taken measures to boost reserves, but says real issue is economic management
Reinventing reserve management: governance, risk and agility in a fragmented global financial system
Bank Indonesia’s new total‑portfolio approach tightens governance, risk controls and implementation speed in volatile global markets, writes reserves head Rahmatullah Sjamsudin
Zafar Parker on 25 years of reserve management at the Sarb
Amid evolving risk, the head of financial markets talks about the journey to excess balance transfers to the government as South Africa’s reserves rose from $20bn to $80bn