Japanese Yen banknotes are seen in this illustrated photo taken on September 23, 2022.Reuters/Florence Law/Illustration Obtaining license rights
TOKYO, Nov 15 (Reuters) – A former Japanese finance official said on Wednesday that the weaker yen could be caused not only by the difference in interest rates between Japan and the U.S. but also by structural factors such as worsening fiscal conditions. Ta.
Under these circumstances, any currency intervention by the authorities will not help turn the market around and have a lasting impact, but smoothing operations may be acceptable, said Rintaro Tamaki, former vice-minister of international finance. he told Reuters.
Addressing investor concerns, Tamaki said, “Confidence in Japan’s finances, declining competitiveness, aging population, and shrinking labor force may be disincentivizing Japanese authorities from implementing bold policies.” There is a gender,” he said.
“I think foreign investors are thinking about the meaning of investing in Japan.”
Mr. Tamaki was asked about the possibility of the authorities intervening in the foreign exchange market by selling dollars and buying yen, and answered that while market intervention may have a psychological impact, the fundamental structural problem will not change. Stated.
During his tenure, Tamaki intervened in the market after the March 2011 earthquake and tsunami devastated much of northeastern Japan and triggered the Fukushima nuclear crisis.
“We intervened in the market in response to the rapid appreciation of the yen and to restore a sense of stability,” Tamaki said. “This is nothing more than a smoothing operation. We cannot think of intervention as a means of changing the exchange rate level,” he said.
Reporter: Satoshi Kajimoto Edited by: Robert Barthel
Our standards: Thomson Reuters Trust Principles.
