TOKYO (MNI) – Japanese Finance Minister Jun Azumi, speaking at the
fiscal and finance committee of the Lower House, said Bank of Japan
foreign bond buying, a step proposed by a newly appointed BOJ board
member, would be inappropriate.
Responding to a question whether foreign bond buying could be used
as a measure to weaken the yen, Azumi said, “BOJ foreign bond buying, as
a measure replacing MOF’s forex intervention, would be inappropriate.”
He added, “Coordination with monetary authorities overseas is
indispensable for forex intervention, and the MOF minister alone should
be in charge of the job.”
Kazuo Momma, one of the six executive directors at the BOJ who
support the governor, also said buying and selling of foreign exchange
(in order to purchase foreign bonds) would have a similar impact to the
intervention managed by the MOF minister and therefore cannot be used as
part of the BOJ’s monetary policy.
New BOJ board member Takehiro Sato, speaking after his appointment
on July 24, said the purchase of foreign bonds and riskier assets could
be possible for additional easing.
tkeditorial@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4833 **
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