The government and the Bank of Japan decided to intervene in the market by selling the dollar and buying the yen in order to stop the rapid depreciation of the yen.


This is the first time in 24 years and 3 months since June 1998, when the yen depreciated in the middle of Japan's financial crisis.


Why did you intervene at this timing?


Cap Shimomura, who is in charge of the Bank of Japan, explains the effects of the intervention.



(The video is 3 minutes and 21 seconds. Not available on data broadcasting.)

Background of market intervention, why this timing?

If the rapid depreciation of the yen continues, the prices of imported goods such as energy, food, and raw materials will rise, which could adversely affect corporate activities and people's lives.


It seems that there was such a sense of crisis.



In the early hours of this morning, the FRB of the United States decided to raise interest rates significantly, while the Bank of Japan maintained large-scale monetary easing during the day. I was there.



During the day, the Bank of Japan Governor Kuroda emphasized at a press conference that interest rates would not be raised for the foreseeable future, and the dollar broke through ¥145.



This level of 1 dollar = 145 yen was approaching this level on the 14th of this month. I was leveling up.



On the same day, the 14th, the Bank of Japan conducted a "rate check" for banks and others, which is said to be a move to prepare for market intervention.



It seems that the sense of crisis has further strengthened by breaking through this level at once today.

Did Japan and the United States cooperate in this market intervention?

At the press conference just now, Minister of Finance Suzuki avoided clarifying whether he was intervening alone, but said, "We are in regular contact with the countries concerned," and made arrangements with the United States and others in advance. suggested that



Regarding this market intervention, there were voices in advance that it would be difficult to implement because the United States did not understand it.



This is because, for the United States, which is hit by record inflation, if intervention causes the yen to appreciate against the dollar, it could lead to further price increases.



For this reason, how Japan and the United States will communicate with each other regarding intervention is likely to be an important point in the future.

Will the effects of the intervention continue? What is the future focus?

The recent market intervention may put a brake on the rapid depreciation of the yen, as it will be a major restraint on speculative transactions.



However, behind the acceleration of the yen's depreciation against the dollar is the major difference in monetary policy between Japan and the United States.



Some point out that the effect of putting a brake on the yen's depreciation will be limited, as the situation of the United States rushing to tighten monetary policy and Japan continuing to ease monetary policy will not change for the time being.

If the yen weakens further, will the government and the Bank of Japan once again intervene in the market?


How big is that?



It will not be easy for the government and the Bank of Japan, which have finally embarked on market intervention that can be described as a “legendary sword,” to dramatically change the trend of the depreciating yen. will be questioned.