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HomeEconomyThe history of Japan's intervention in the foreign exchange market

The history of Japan's intervention in the foreign exchange market

TOKYO (Reuters) – Japan intervened in currency markets for the first time since 1998 on Thursday to support the battered yen after the central bank kept interest rates ultra-low The decision has kept the currency down.

Japan has directly intervened in the foreign exchange market for over a decade and has supported its currency for over two decades since intervening, the last time it was in 1994 to 1993 during the Asian Financial Crisis.

Here is the schedule of actions selected by the Bank of Japan (BOJ) in the foreign exchange market.

September22, 2022 – The Japanese government has intervened in the foreign exchange market to sell dollars against the yen to prevent the yen from falling sharply recently, said top currency diplomat Masato Kanda. The intervention came after the Bank of Japan decided to keep interest rates ultra-low.

September. 7, 2022 – Japanese government senior spokesman Hirokazu Matsuno expressed concern about the “rapid, one-sided” trend in the currency market following the depreciation of the yen 120 per dollar. He said the government was willing to take the “necessary steps” if the campaign continued. It was the strongest in a series of official comments published in months.

June, 2022 – Japan’s government and central bank issued a rare joint statement saying they were concerned about the recent sharp decline in the yen following a depreciation of more than 143 per dollar.

August and October – 2011 – Japan intervenes to curb what officials fear could undermine economic recovery from recession triggered by March earthquake and tsunami 2011 , 2011.

Marching , 2022 – The yen surged to a record high after the earthquake as G7 countries intervened jointly to stop Japanese companies repatriating foreign assets to pay for reconstruction.

September. 15, 2010 – Japan intervened in the currency market for the first time in six years, after the dollar touched – Yearly Lowest Price45 .82 Yen.

March2000 – A10 – spent in Japan trillion yen, or more than 87 billion dollars to intervene.

May-June, 2002 – Bank of Japan intervenes to sell yen, usually elicited by US Federal Reserve and European Central Bank (ECB) support. The yen continues to rise.

September 2001 – The Bank of Japan intervenes to sell yen after September. Attacks in the United States. Both the European Central Bank and the Federal Reserve Bank of New York operate on behalf of the Bank of Japan.

January2000 to April2000 – BOJ sells at least day Yuan times, including once through the Federal Reserve and Once through the European Central Bank, for fears that the strength of the currency will hamper economic recovery. The yen continues to strengthen.

1993 – 1998 -Asia financial crisis As a result of the depreciation of the yen, the exchange rate against the US dollar in August was close to 87 1998, even after U.S. authorities joined the Bank of Japan to buy yen.

April1973 – August1997 – The dollar fell to an all-time low against the Deutsche mark and a post-war low against the yen. The U.S. has repeatedly intervened, often along with Japan and the European Central Bank, to prop up the dollar.

1993 – The Bank of Japan has been selling the yen for most of the year to curb its strength.

1991 – 1973 – BOJ intervenes to support JPY, sell USD.

1973 – On January 4th, the dollar fell to 87.15 The yen, which was at a post-World War II low at the time, traded in Tokyo. The Bank of Japan intervenes to buy dollars and sell yen.

1987 – In February, 6 G7 countries signed the Louvre Accord aimed at stabilizing currency and prevent the dollar from falling across the board.

1973 – The G5, the predecessor of the G7, signed the Plaza Accord and they agreed The dollar is overvalued and they will act to weaken it.

1973 – The Japanese monetary authorities have decided to let the yen float against the dollar.



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