Tolle Wurst: Japan will mit neuen Schulden den Schulden-Dollar kaufen.

verfasst von Das_Orakel_aus_Oberlahnstein, 03.10.2003, 08:01

-->Japan may raise borrowing limit to finance intervention: MoF official
Thu Oct 2, 4:34 AM ET Add Business - AFP to My Yahoo!

TOKYO (AFP) - Japan may raise the legal limit on its borrowing to finance its massive dollar-buying operations, a finance ministry official said, while currency dealers said they suspected renewed intervention by Japanese authorities determined to rein in the surging yen.

The Bank of Japan appeared to have stepped in to buy dollars on Thursday, dealers said, after the US Federal Reserve (news - web sites) intervened on Japan's behalf in New York on Tuesday -- the first confirmed intervention since the Group of Seven (G7) nations called on governments to allow more flexible foreign exchange markets earlier this month.


The G7 statement, reflecting the US position, was taken at the time to be aimed at Asia generally and at Japan and China in particular over intervention to keep the value of their currencies low in a bid to boost exports.

Japanese officials declined to comment on Thursday's suspected action.

Meanwhile, an official at the ministry's Foreign Exchange Markets Division told AFP there was no immediate plan to raise the cap on the special foreign exchange account, currently set at a cumulative 79 trillion yen (712 billion dollars).

However, the official added:"The possibility is not zero," that the ceiling will be raised in the current fiscal year to March 2004 as the government may choose to draft a supplementary budget for other spending needs.

The official was commenting on a report in the Nihon Keizai Shimbun economic daily that the finance ministry is considering raising the limit by 10-20 trillion yen, up to one quarter of the existing multi-year ceiling.

"There may emerge a debate (on raising the ceiling) as we compile the (national) budget for the next fiscal year," the official said.

Currency traders detected signs of intervention in Tokyo just before 8:00 am on Thursday (2300 GMT Wednesday), said Koji Fukaya, chief foreign exchange analyst at Bank of Tokyo-Mitsubishi.

"The dollar suddenly shot from around 110.60 yen to about 111.30 yen in very little time," he said."It certainly looked like intervention."

There was also talk that Japanese authorities were asking dealers at commercial banks for prices, or 'checking rates' as it is known in the market, in an apparent effort to sustain the early gains without having to actually buy more dollars, Fukaya said.

The finance ministry needs parliamentary approval to raise the ceiling, while the lower house is expected to be dissolved in mid-October in preparation for general elections in November.

Japan raised the limit on borrowing for the foreign exchange account by 10 trillion yen for the second consecutive year in the year to March 2003, raising the ceiling from 69 trillion yen to 79 trillion yen.

Satoru Ogasawara, currency strategist at Credit Suisse First Boston, said the ministry would hit the ceiling in three months if it continued to intervene in the market at the current pace.

Massive intervention by the Japanese authorities this year has pushed the outstanding borrowing balance to 67 trillion yen, the Nihon Keizai said.

"They are sending a message to the market that they are determined to prevent a stronger yen," said Ogasawara.

The finance ministry said this week Japan resumed intervention in the currency markets in September, spending a massive 4.46 trillion yen in the month to September 26 alone and taking the approximate total spent so far this year to a record 13.5 trillion yen.

Finance Minister Sadakazu Tanigaki on Wednesday reiterated that Tokyo would take"decisive" steps against any drastic movements in the foreign exchange markets to stop a strong yen from hurting the economy.

The dollar was quoted at 110.99 yen around 4:05 pm Thursday in Tokyo, up from 110.60-70 yen in New York late Wednesday and a three-year low of 110.07 yen hit earlier this week.



<ul> ~ Business-AFP</ul>

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gesamter Thread:

• Tolle Wurst: Japan will mit neuen Schulden den Schulden-Dollar kaufen. - Das_Orakel_aus_Oberlahnstein, 03.10.2003, 08:01
  • Re: Das Ende jeglicher Geldwertstabilitätsträumereien - JLL, 03.10.2003, 08:22
    • Re: Das Ende jeglicher Geldwertstabilitätsträumereien - Euklid, 03.10.2003, 09:54
      • Re: Das Ende jeglicher Geldwertstabilitätsträumereien - CRASH_GURU, 03.10.2003, 10:42
        • Re: Das Ende jeglicher Geldwertstabilitätsträumereien - Euklid, 03.10.2003, 11:19
          • Re: Das Ende jeglicher Geldwertstabilitätsträumereien - CRASH_GURU, 03.10.2003, 12:01
            • Re: Das Ende jeglicher Geldwertstabilitätsträumereien / No... - -- Elli --, 03.10.2003, 12:23
              • das versuchte JLL ja zu sagen oder... - EM-financial, 03.10.2003, 13:42
                • Re: das versuchte JLL ja zu sagen oder... - -- Elli --, 03.10.2003, 14:32
                  • Re: das versuchte JLL ja zu sagen oder... - Euklid, 04.10.2003, 12:50
                    • Wieso Inflation? Wer kauft den noch einen normalen Golf zum EK? - LenzHannover, 05.10.2003, 08:29
                      • Re: Wieso Inflation? Wer kauft den noch einen normalen Golf zum EK? - Euklid, 05.10.2003, 10:11
                • Re: Sorry, aber die ZBs kaufen nichts selber - dottore, 03.10.2003, 15:06
            • Re: Das Ende jeglicher Geldwertstabilitätsträumereien - Euklid, 04.10.2003, 12:39