TOKYO (MNI) – Japanese Vice Finance Minister for International Affairs
Takehiko Nakao said on Monday that Tokyo is considering buying debt to be issued
by the European Stability Mechanism.
He also repeated the MOF’s stance that it will intervene in the forex
market to counter any excessive movements if necessary.
Nakao repeated his ministry’s position, saying, “We are considering buying”
ESM bonds after checking some factors such as their credit ratings and
liquidity.
The European debt crisis “is the most important risk to the world economy
today” but the debt held by Greece is now at an “acceptable level” thanks to
steps taken by the Eurogroup, he said in a key note speech at a forum hosted by
Paris Europlace.
During a panel discussion at the forum, Nakao said forex intervention “is
the only tool we have” to ease adverse effects of a drastic rise in the yen if
the situation remains that there is no room for the policy interest rate set by
the central bank to be lowered from the practically zero level.
“We will act decisively” if the forex market shows an excessive
fluctuation, he said but added, “Of course, we must consult with other Group of
Seven members.”
The dollar depreciation to Y75 last year amid the European debt and
political crisis, down from Y125 seen before the 2008 collapse of Lehman
Brothers triggered a global credit crisis, was “excessive,” said Nakao.
–MNI Tokyo Bureau; tel: +81 90-4818-1387; email: skodama@mni-news.com
–MNI Tokyo Bureau; tel: +81 90-4670-5309; email: msato@mni-news.com
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