The weakening of the Japanese national currency exchange rate followed media reports of a possible new head of the country’s national bank on February 6, reports NHK television.
The second five-year term of current Bank of Japan head Haruhiko Kuroda expires on April 8. His stay was accompanied by an ultra-liberal monetary policy aimed at pushing inflation up to the 2% mark.
However, when the consumer price index reached 4% at the end of 2022, the bank manager said that this phenomenon was caused by external factors and was therefore temporary. For this reason, the financial regulator will not review its policy of issuing short-term loans at a negative interest rate and early redemption of government bonds.
Until that moment, the mandate of its deputies expires. According to information circulating in local media, one of them, Masayoshi Amamiya, 67, could take the place of his boss. Several experts decided that such an appointment would lead to the preservation of the current policy of increasing the money supply.
It should be noted that against the background of these messages, the national currency quickly lost four points and reached 132 yen per US dollar. NHK believes that the drop in the exchange rate led investors to buy shares of exporting companies on the stock market.
According to the Japanese agency Kyodo News, the government intends to officially announce the candidates for the post of head of the Bank of Japan and two of his deputies in mid-February. Officially it is only known that the Cabinet of Ministers intends to change the management of the bank, but until then no changes in policy are expected.
During the press conference, Japanese Prime Minister Fumio Kishida only stated his intention to pay due attention to the political issue.
Candidates can only be formally appointed after approval by both houses of the country’s parliament. The meeting with these candidates is expected to take place at the beginning of March, when they will give a magisterial conference and answer questions from the deputies about what type of policy they intend to follow.
Source: Rossa Primavera
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