(topic 6) japan's sterilized fx intervention
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STERILIZED FX INTERVENTION:
THE EXEPERIENCE OF JAPAN
SHARON CHOO | DIV TENG | SHAUN CHIA | TEE BENJAMIN
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CONTENT OUTLINE
1) Key Issues relating to sterilized FX intervention
2) Japans experience in using sterilization
- Approach taken through history- Effectiveness of Intervention efforts
3) Lessons learnt in exchange rate management
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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KEY ISSUES FX STERILIZATION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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WHY USE STERILIZATION?
Objective of Central Bank:
Maintaining Price Stability
Controls money supply
through i/r (minimize inflation)
Managing foreign reserves
(exchange rate)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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HOW IS STERILIZATION DONE ?
CB carries out equal foreign and domestic assettransactions in opposite direction so as to keep
domestic money supply unchanged.
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Source: Sarno, Lucio, and Mark P.Taylor. 2001.Official Intervention n the Foreign Exchange Market: Is It
Effective and, If So,How Does It Work? Journal ofEconomic Literature 39(3), pp. 839868.
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3/26/2012KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
HOW IS STERILIZATION DONE ?
Illustration of how
the CB balance sheetis maintained and
effect on Monetary
Base
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THEORETICAL FRAMEWORK1
Sarno & Taylor (2001) sets out two theoretical explanations
for sterilized FX intervention:
1) Portfolio Balance Channel
2) Signaling Channel (Market Expectations)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
1Sarno, Lucio, and Mark P.Taylor. 2001.Official Intervention n the Foreign Exchange Market: Is It Effective
and, If So,How Does It Work? Journal ofEconomic Literature 39(3), pp. 839868.
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PORTFOLIO BALANCE CHANNEL
Public sees foreign assets as imperfect substitutes
Following intervention against the YEN (Sell ), public
finds itself holding larger share of YEN assets
At prevailing exchange rates this induces people to sell
extra YEN to rebalance their portfolio
Sale of YEN assets would cause the ER to fall (
depreciates)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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SIGNALING CHANNEL
Intervention conveys a signal that changes public
expectations toward a future exchange rate
Sees signal as reflecting a change concerning future
monetary policy or economic fundamentals
As expectations change, ER moves in tandem
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
NOTE: As US & Japan maintain unrestricted capital flows, short termsecurities are highly substitutable, giving more credibility to the
signaling channel as the theoretical basis for sterilization.
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FREE MARKET v GOVT INTERVENTION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Should the central bank intervene or let the free
market decide on the exchange rate?
Source of stability or more volatility?
Cost?
Implications?
Impossible Trinity?
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THE JAPANESE EXPERIENCE:
APPROACHES & EFFECTIVENESS
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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INSTITUTIONS INVOLVED
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
BANK OF
JAPAN (BOJ)
MINISTRY OF
FINANCE (MOF)
Determines intervention
policy (FX policy)
Responsible for Fiscal
Policy (Tax + G)
Determines whether
sterilization takes place
Acts as ministrys agent in
conducting actual
sterilization operations
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HOW INTERVENTION IS DONE IN JAPAN
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Ministry of Finance raises necessary funds for foreignexchange through sale of short-term government bills.
Yen-funds obtained deposited in FEFSA (foreign exchange
funds special account
BOJ given authority to use funds from FEFSA to carry out
FX market operations
NOTE: As bills are issued before actual FX operations it implies that
Japanese FX intervention activity is automatically sterilized
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OVERVIEW OF JAPANESE INTERVENTION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Source: Data from World Bank: World development Indicators
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OVERVIEW OF JAPANESE INTERVENTION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
4 Main Episodes of Japanese Intervention Activity:
1975 1978
1985 1990
1991 1998
2003 2004
STATE OF ECONOMY APPROACH
EFFECTIVENESSOBJECTIVES
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LEARNING TO FLOAT
(1973 1979)
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Source: Data from World Bank: World development Indicators
LEARNING TO FLOAT (1973 1979)
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LEARNING TO FLOAT (1973 1979)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Collapse of Bretton Woods Fixed ER system in 1971
Appreciation of the YEN from 308 = 1USD (1971) to 250 =
1USD (1977)
Moderate economic growth and accumulation of trade
surpluses
Amidst two oil shocks in 1973 and 1979
STATE OF THE ECONOMY
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LEARNING TO FLOAT (1973 1979)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
First period of prolonged intensive intervention (Selling Yen)
in 1977:
To prevent sharp appreciation of the YEN which crossed
250=1USD in Nov 1977
Coordinated intervention efforts with central banks of
US/Germany & Switzerland in selling Yen.
Pattern reversed in 1979 as YEN began to depreciate with
the second oil shock in 1979
APPROACH
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LEARNING TO FLOAT (1973 1979)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
OBJECTIVES & EFFECTIVENESS
Intervention was small and frequent
To reduce ER volatility and to prevent excessive sudden
appreciation of the YEN.
Successful in smoothing operations, limited in success in
preventing LR appreciation of the YEN.
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FROM PLAZA TO LOUVRE
(1985 1989)
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SECOND PERIOD: 1985 - 1989
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Source: Data from World Bank: World development Indicators
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FROM PLAZA TO LOUVRE & BEYOND (1985-1989)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Plaza Accord signed on 22 Sept 1985 to correct
overvaluation of the USD.
Following agreement, YEN appreciated sharply from240=1USD (Sept 1985) to 200=1USD (Nov 1985)
STATE OF THE ECONOMY
Source: Datastream (London closing rates); Yen/Dollar Exchange rate (16 Sept 13 Dec 1985)
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FROM PLAZA TO LOUVRE & BEYOND (1985-1989)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
With sufficient appreciation achieved, authorities attempted
to achieve ER stability without success.
Moved to conclude the Louvre agreement in Feb 1987, withG-6 countries to cooperate closely to stabilize ER
Joint intervention appeared to keep ER within a target zone
(1987) but soon appeared fruitless as the markets no longer
believed the credibility of policy coordination.
STATE OF THE ECONOMY
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FROM PLAZA TO LOUVRE & BEYOND (1985-1989)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
APPROACH
Large, frequent
interventions
37 days (out of 169)
EFFECTIVENESS
Source: IMF, International Financial Statistics
PURCHASE OF $s
Source: Nihon Keizai Shinnun; Funabashi (1988)
Limited in success Ineffective after 1988
Feb Oct 1987
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FROM PLAZA TO LOUVRE & BEYOND (1985-1989)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
IMPLICATIONS
During period of appreciation following the Plaza accord, capital
controls were swiftly relaxed:
In May 1987, as they tried to FIX ER within the particular band,
they could not turn to capital controls
Sharp appreciation of the YEN also meant severe deflationary
pressures, forced BOJ to turn to easy monetary policy (Cut I/R) to
stabilize the YEN and expand domestic demand
Policy which was too loose, too fast resulted in asset price
inflation through 1990 and subsequent burst bubble in 1991.
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FRAGILE RECOVERY : (1991 1995) & (1995 1999)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Source: Data from World Bank: World development Indicators
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
STATE OF THE ECONOMY
FRAGILE RECOVERY : (1991 1995) & (1995 1999)
Following the bursting of the asset price bubble in 1991,
slow economic growth & stagnation
Reduction of I/R from 4.5% in 1991 to 0.5% in 1995 Period characterized by spectacular YEN appreciation from
140=1USD (Apr 1991) to 80=1USD (Apr 1995) and
depreciation back to 146=1USD (Apr 1998)
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
APPROACH
Distinct differences in
intervention strategy
before and after 1995.
Before 1995: Small &
Frequent
After 1995: Large &
Infrequent
Coincided with change of
leadership: Dr Sakakibara
Mr Yen appointed in
June 1995Feb Oct 1987
FRAGILE RECOVERY : (1991 1995) & (1995 1999)
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
BEFORE 1995
FRAGILE RECOVERY : (1991 1995) & (1995 1999)
In March 1995, market pressures forced the YEN to
appreciate beyond the 90 mark, and the authorities
intervened on 21 days out of 23 days.
Despite selling nearly 500 billion YEN, authorities were
unable to keep the YEN from appreciating to 80=1USD.
Swift move of YEN attributed to delta hedge funds
Coincided with auto-trade disputes between Japan & US.
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
AFTER 1995
FRAGILE RECOVERY : (1991 1995) & (1995 1999)
After appointment of Dr Sakakibara, interventions were
less frequent and extremely large in comparison
Intervention conducted in the same direction as the
market v opposing the market
He believed previous efforts failed because of the
predictable nature of the interventions and could not
change market sentiments
On 8th September 1995, authorities made a successful
push to bring the ER across the 100 mark
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
APPROACHES TOWARD INTERVENTION
FRAGILE RECOVERY : (1991 1995) & (1995 1999)
Lean AGAINST the wind strategy
Putting a break on trend of ER movements
a. Reverse the trend
b. Slows down the trend
Lean IN the wind strategy
Intervention in the same direction as the trend
a. Hasten the return to normal level
b. Make sure direction continues
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
FRAGILE RECOVERY : (1991 1995) & (1995 1999)
EFFECTIVENESS
Using a general test criterion:
Whether following an MOF operation, exchange rate moves in
the desired direction or at least slows the movement in the
undesired direction.
First Period Second Period
Days of Intervention 165 days 49 days
Between Interventions 6 days 49 days
Median Amount $348 Million $3,984 Million
% Success 27.9% 51.2%
Source: Chaboud, Alain P. and Owen F. Humpage, An Assessment of the Impact of Japanese Foreign
Exchange Intervention: 1991-2004. Board of Governors of the Federal Reserve System, International
Finance Discussion Papers, No. 824, January 2005.
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THE GREAT INTERVENTION
(2003 -2004)
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THE GREAT INTERVENTION (2003 2004)
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Source: Data from World Bank: World development Indicators
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
STATE OF THE ECONOMY
In 2003, the Bank of Japan intervened vigorously to reduce
the value of the YEN.
Motivated by the perception that an excessive rise in theYEN would hinder economic recovery by reducing export
competitiveness
35 trillion YEN sold between Jan 03 and Mar 04
Massive intervention led to a substantial increase in
Japanese foreign reserves to more than $800 billion.
THE GREAT INTERVENTION (2003 2004)
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
APPROACH
Unilateral purchase of US$.
Stealth intervention
Extremely large and
frequent
Median amount of $1,753
million
Days between intervention= 3 days
Source: Japanese Ministry of Finance
THE GREAT INTERVENTION (2003 2004)
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
EFFECTIVENESS
THE GREAT INTERVENTION (2003 2004)
Relatively successful during first
8 months of 2003 (stability)
However, effects appeared to
be temporary.
LT appreciation of the YEN from
Oct 03 despite greater
intervention
122
115
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
OVERALL EFFECTIVENESS OF STERILIZATION
KEY OBSERVATIONS
Success of sterilized Intervention dependent on:
1. Whether intervention was expected
2. Whether intervention was coordinated or unilateral
3. Size of the Intervention
4. Frequency of the Intervention
NOTE: Most of these factors are related to whether sterilization is
able to successfully influence market expectations (Ee)
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COSTS & IMPLICATIONS
How sterilized intervention transcended
to the broader economy
Japan succumbed to international pressures in allowing its
currency to float. Yen appreciated strongly. Relaxation of capital
controls thereafter
Affected Japans exporters competitiveness heavily dependent
on CA of goods (relative profits of exporters drop when
appreciated)
Central Bank conducts sterilized intervention to prevent
appreciation of to help exporters
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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COSTS & IMPLICATIONS
What Japan did not foresee
Concurrently to avert a recession, loose monetary policy (I/R)
adopted
Capital inflows and loose monetary policy caused asset bubble
burst
Deflationary pressures in the economy. Citizens have high
propensity to save. Even at I/R near to 0, unable to stimulate
economy
Weak economic growth, deflationary pressures still felt today
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LESSONS IN USING STERILIZATIONTAKEAWAYS FOR JAPAN
IMPLICATIONS FOR CHINA
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
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LESSONS IN USING STERILIZATION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Lessons: Japans Intervention Experience
If fundamental factors affect the markets view of the ER,
intervention is usually ineffective
Eg Large trade surpluses with US and GDP growth due to
growing Japans export industry
If interventions are predictable in nature, market will adjust
itself to beat the interventions
Expected size and time of intervention
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LESSONS IN USING STERILIZATION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Lessons: Japans Intervention Experience
Importance of CB in managing the impossible trinity dilemma
Sudden relaxation of capital controls not desirable
Coupled with a decrease in interest rates to stimulate economy
in averting a recession
Loss of control of monetary independence following
decision to float ER and relax capital controls
Double source of pressure for currency appreciation.
Fuels inflation and asset bubble
LESSONS IN USING STERILIZATION
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Similarities between 70s Japan and present China
LESSONS IN USING STERILIZATION
Nature of economy Export oriented
ER System Fixed ER with strict capital controls
Current Account
Status
Large and persistent Current Account surpluses
from trade, particularly US
International view on
Real ER (REER)
seen as undervalued
before & followingcollapse of BWS.
International pressures
to revalue ER.
RMB seen as
undervalued.
International pressures
to revalue ER.
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LESSONS IN USING STERILIZATION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Going Forward: How should China revalue its currency?
Not to succumbed to international pressures
Immediate and steep revaluation of ER dangerous and risky Gradual shift away from current fixed exchange rate intervention
and capital controls as Chinas economy grow
Give up sovereign monetary independence if it decides to adopta free floating currency with free capital movement
Prevents rapid inflation and domestic problems in the country
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LESSONS IN USING STERILIZATION
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Was Japan profitable in its Intervention?
Why no Quasi Fiscal Cost?
Free Capital Flows!
- Boon or Bane?
- Stimulate FDI or cause excessive speculation?
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STERILIZED FX INTERVENTION:
THE EXEPERIENCE OF JAPAN
SHARON CHOO | DIV TENG | SHAUN CHIA | TEE BENJAMIN
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Links
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Key Issues Japans Experience Lessons Learnt
Introduction to FX
Sterilization
How Intervention is Done Lessons: Japans
Intervention Experience
Portfolio Balance Overview of Japans
Intervention
- 1975-1978
- 1985-1990
- 1991-1998
- 2003-2004
Similarities: Japan v China
Signaling Channel How should China revalue
its currency
Overall Effectiveness
Costs and Implications
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REFERENCES
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
Ito, T (2003). Is foreign exchange intervention effective? The Japanese experience in the 1990s. In Monetary
History, Exchange Rates and Financial Markets, Vol. 2, P Mizen (ed.), pp. 126153.
Cheltenham, UK: Edward Elgar.
Fatum, R and M Hutchison (2005). Foreign exchange intervention and monetary policy in Japan,
20032004. International Economics and Economic Policy, 2, 241260.
Fatum R, Hutchison M. (2006). Effectiveness of official daily foreign exchange market intervention operations in
Japan. Journal of International Money and Finance 25: 199219.
Takagi, S. (2008). Managing Flexibility: Japanese Exchange Rate Policy, 1971 2007, Exchange Rate Systems andPolicies in Asia, Stallion Press, Singapore
Chaboud AP, Humpage OF. (2005). An assessment of the impact of Japanese foreign exchange intervention: 1991
2004. Board of Governors of the Federal Reserve System, International Finance Discussion Papers, No. 824,
January.
Sarno, Lucio, and Mark P.Taylor. (2001).Official Intervention in the Foreign Exchange Market: Is It Effectiveand, If So,How Does It Work? Journal ofEconomic Literature 39(3), pp. 839868.
Meyer Claude (2007). Should China revalue its curreny? Lessons from the Japanese Experience Groupe
d/Economie Mondiale, (GEM) , SciencePo, Policy Brief 2008, April
Ito, T. (2007), Myths and reality of foreign exchange interventions: an application to Japan. Int. J. Fin. Econ.,
12: 133154. doi: 10.1002/ijfe.336
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Appendices: BoJ 2011 Intervention
KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
STATE OF THE ECONOMY
On 11 March 2011, the Thoku earthquake and tsunami
occurred incurring an economic lost of US$235billion
Japan being export oriented needs to maintain a
competitive exchange rate
Japan current account surplus makes it most reliable a
currency to keep in comparison to Euro (debt crisis) and
RMB (wariness on growth sustainability)
http://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-
gloominess-in-europe
http://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europehttp://seekingalpha.com/article/318114-2012-yen-outlook-expecting-strength-from-boj-intervention-gloominess-in-europe -
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
APPROACH
Unilateral
purchase of US$.
Delayed
announcement
(stealth)
Extremely large
Repeated
attempts
Appendices: BoJ 2011 Intervention
Statistics from http://www.boj.or.jp/en/statistics/pub/boj_st/index.htm/
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KEY ISSUES JAPANS EXPERIENCE LESSONS ON STERILIZATIONINTRODUCTION
EFFECTIVENESS
Only Oct 10 & Sep 11
had an immediate
depreciation of
currency
However objective is to
slow down & provide
direction
2 of 4 remaininginterventions had a
reversal in direction
within 2 months
Appendices: BoJ 2011 Intervention
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7/30/2019 (Topic 6) Japan's Sterilized FX Intervention
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IMPLICATIONS
The interest rates per annum remained at 0.3%1
(no monetary independence)
Managing the challenges of the Impossible Trinity:
USD vs Yen
82.4878 (25 Mar 12)
Appendices: BoJ 2011 Intervention
1 I/R from http://www.boj.or.jp/en/statistics/pub/boj_st/index.htm/
http://www.boj.or.jp/en/statistics/pub/boj_st/index.htm/http://www.boj.or.jp/en/statistics/pub/boj_st/index.htm/