Japan's Finance Ministry's Vice Finance Minister for International Affairs Kanda. He is the guy (its normally a guy, yeah) who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan's 'top currency diplomat'.
Comments:
- Cannot tolerate rapid, one-sided fx moves driven by speculative trade, such as those seen last year
- Important for fx markets to move stably reflecting economic fundamentals
- Currency rates are basically set by markets
- Excess fx volatility and disorderly moves can hurt economic and financial stability
- BOJ targets price stability, while MoF seeks stable currency moves
- Wants to discuss enhancing Chiang-Mai initiative by making its swap arrangement more flexible
There is little yen response. This sort of verbal intervention can be of use when the moves are one-sided, and as he says they were last year (you'll recall the sharp yen weakness that turned in late October). But right now, is he just blowing off stream? 'Cause they is no pressing need for them.
