Where the Bank of Japan (BOJ)’s newly printed yen is going

From FastFT (gated): Where the BoJ’s newly printed yen is going

• The Bank of Japan has been flooding the economy with money for a year
• But companies are not really using it to expand their businesses
• Cash is flowing abroad in the form of corporate investment and bank lending elsewhere in Asia
• Bank lending to ASEAN (eg. Thailand, Malaysia and Indonesia), and also Japanese foreign direct investment into these countries
• Japanese lending into China has increased also

–

Much like the Fed’s QE. Can’t wait for the predictable squeals once the BOJ starts to exit (which will be a good while off I suspect).