Latest News:  


Japan minister: Not to buy foreign bond for monetary easing


20:47, February 19, 2013

TOKYO, Feb. 19 (Xinhua) -- Japanese Finance Minister Taro Aso on Tuesday stated that the central bank would not be buying foreign bonds as part of its monetary easing methods.

Speaking at a news conference following a Cabinet meeting earlier in the day, Aso said that he rejected experts' ideas that the Bank of Japan (BOJ) could incorporate foreign bond purchases as part of the bank's monetary easing methods.

"We have no intention to ask the BOJ to purchase foreign bonds, " Aso said, in a move aimed to dispel rumors that the government was leaning on the central bank to manipulate its currency, as foreign bond purchases essentially involve large-scale yen selling.

The BOJ has come under pressure from Prime Minister Shinzo Abe' s administration, with the prime minister himself on Monday suggesting in parliament that foreign bond buying could be a feasible option as part of the BOJ's monetary easing endeavors.

Purchasing foreign bonds straight from the market could help make financial conditions more favorable here, by forcing the yen lower and boosting domestic demand, as the nation continues to grapple with chronic deflation and a shrinking economy.

Japan's economy contracted at an annualized rate of 0.4 percent in the October to December quarter, on declining exports and business investment, marking the third straight quarter of contraction, data released by the government revealed Thursday.

The figures released by the Cabinet Office showed that the economic contraction was largely due to a 3.7 percent decline in the export of Japanese goods and services abroad, which have been hampered by the yen's relative strength.

Despite mounting pressure from the government on the bank to do more to tackle deflation, the central bank has remained steadfast in trying to maintain its autonomy from the government, as the bank is prohibited from intervening in currency markets, as such moves can only be made by the finance ministry.

However, the government has controversially suggested that it will encroach on the central bank's operations should the bank fail to achieve its recent 2 percent inflation target.

We recommend:

Backstage of Ralph Lauren 2013 Fall collections

New York slammed with heavy snow

"Swan Lake" rehearsed in Mexico

Costumed revellers gather in Venice

People protest against DPRK's nuclear test

Chinese Lunar New Year celebrated around world

Email|Print|Comments(Editor:YaoChun、Chen Lidan)

Leave your comment0 comments

  1. Name


Selections for you

  1. Female sailors hold combat positions

  2. Chinese flotilla sets sail on escort missions

  3. Highlights of Madrid Fashion Show

  4. China's weekly story (2013.2.8-2.15)

  5. Beauties at Beijing Film Academy enrollment site

  6. Fact check on Russian meteorite crash

  7. Happy big brother has birthday cake

  8. Chocolate fantasy park offers entertainment

  9. 3D printing reshapes manufacturing

  10. HK Disney's 1st profit since opening

Most Popular


  1. Who cares for the village doctors?
  2. The weakening yen's impact on China
  3. Young climbers aim too high in China
  4. China Focus: Festive traditions disrupt green efforts
  5. Chinese distrust strangers, lack shared values
  6. How to face wrestling's removal from Olympics?

What’s happening in China

Auto-chat app sparks social skills concern: A littile yellow chicken can talk, really?

  1. $16,000 offer for 10-minute swim in polluted river
  2. Paid leave seen as tourism boost
  3. Pressure leaves millions exposed to suicide risk
  4. 5 buried in SW China landslide
  5. Psy attracts 9 million followers on Sina Weibo