Governor of the Bank of Japan “Responding to purchases of government bonds, etc. Does not directly affect foreign exchange”

The Bank of Japan's Governor Kuroda met with Prime Minister Kishida on the 30th to exchange views on domestic and international economic conditions and financial market trends.

After the meeting, Governor Kuroda acknowledged that the BOJ's monetary adjustments, such as the purchase of government bonds, did not have a direct impact on the exchange rate over the recent depreciation of the yen.

The Bank of Japan's Governor Kuroda met with Prime Minister Kishida at the Prime Minister's Office on the 30th and exchanged opinions on the effects of the new coronavirus and the economic situation at home and abroad following Russia's invasion of Ukraine.

After the meeting, Governor Kuroda responded to a question from reporters as to whether he had discussed the recent depreciation of the yen, saying, "I explained the trends in financial markets. Basically, the exchange rate reflects economic fundamentals = basic conditions. I think it is desirable for the economy to remain stable, and I said that. "

In addition, Kuroda pointed out that the depreciation of the yen accelerated as a result of the "limit operation" to buy unlimited government bonds at the yield specified by the Bank of Japan. "We don't think our current financial market adjustments are directly affecting the exchange rate," he said, recognizing that there was a move to buy dollars for that import. ..

When asked if there was a request from Prime Minister Kishida over the response to the depreciation of the yen and the Bank of Japan's monetary policy, he answered, "There was nothing special about that."

Chief Cabinet Secretary "Sufficient communication is important"

Chief Cabinet Secretary Matsuno said at a press conference in the afternoon, "I heard that we exchanged opinions on the economic and financial situation at home and abroad, but in any case, it is important to continue to communicate sufficiently with the Bank of Japan." Said.

On that basis, regarding the recent depreciation of the yen, "I refrain from commenting on the level of the market, but the stability of the exchange rate is important and rapid fluctuations are not desirable. Especially, the trends in the foreign exchange market and Japan, including the recent depreciation of the yen. I would like to pay close attention to the impact on the economy with a sense of tension. "