🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Rintaro Tamaki discusses yen intervention limits amid currency weakness

EditorPollock Mondal
Published 11/16/2023, 09:36 AM
© Reuters.

TOKYO - Rintaro Tamaki, who served as Japan's Vice-Minister of Finance for International Affairs from 2009 to 2011, reflected on past interventions in the currency market, particularly during the tumultuous period following the March 2011 earthquake and the Fukushima disaster. He highlighted these interventions aimed at stabilizing markets but also underscored the limitations of such measures in addressing fundamental economic issues.

Tamaki pointed out that the current weakness of the yen is partly due to the interest rate differentials between Japan and the United States, as well as Japan's deteriorating fiscal health. He acknowledged that while interventions such as dollar-selling and yen-buying could have a psychological impact on markets, they are unlikely to rectify underlying structural problems or provide long-term support for the yen.

Despite this, Tamaki expressed that measures designed to slow down the yen's decline could be seen as acceptable. His reflections come at a time when market participants are closely monitoring Japan's currency policies and their effectiveness in the face of ongoing economic challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.