25 September 2001, 13:11 Hayami believes US not opposed to Japan forex intervention
TOKYO (AFX-ASIA) - Bank of Japan governor Masaru Hayami said he
believes the US is not opposed to the central bank's action to prevent
a further decline in the dollar/yen as it is an attempt to stabilise
world financial markets.
"It is important to stabilise major currencies such as the yen,
dollar and euro so, in that context, I think the US will not be opposed
to dollar-buying intervention," Hayami told a regular press conference.
"Dollar-buying intervention is one of the means to stabilise major
currencies. Japan is stepping into the market at the proper time," he
said.
"We cannot foresee what will happen in the future, therefore we
need to put most attention on the moves in the stock and forex
markets," he said.
"In the past week the forex market moved due to factors such as the
approaching corporate half-year reporting period and fluctuations in
world stockmarkets after the attacks on the US," Hayami said.
He added that aggressive sales of dollar-denominated bonds also
helped weaken the dollar, as well as developments in structural reforms
in Japan, particularly financial-system restructuring.
"Japan's stock and forex markets are showing signs of
stabilisation. I think there will be no problem for companies through
the earnings season, with only three days to go before their half-year
book closing," he said.
"Banks' current performance is fairly good so I don't think there
is any need to inject public money into the banks," Hayami added.
"Japan's financial system will not be immediately disturbed, even
with stock prices at current levels," he said.
Hayami said the upcoming G7 meeting, which has not yet been
scheduled, will provide opportunities for cooperation in stabilising
economies. Officials have said the meeting may go ahead next week.
"The G7 member countries will exchange opinions on the economic
situation after the terror attacks and discuss concerted policy
measures," he said.
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