1 June 2001, 10:16 Shiokawa: Forex market moving normally, govt should not intervene if so
TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the
foreign exchange market is moving normally and the government should
avoid intervention when this is the case.
"If the forex market moves wildly, we cannot leave (the market)
alone," he said, but added: "If the market is moving in a normal way,
and I believe it is normal at present, we should not step in."
Asked whether he is concerned over the euro's fall to close to the
100 yen level, boosting the yen against the dollar, Shiokawa said: "I
have an interest in the forex moves but the forex market should be
controlled by market forces."
He added: "I want to refrain from comment on that."
Meanwhile, Shiokawa said the government should examine the level of
funding it provides to local governments for public works.
"I think the government should review its rate of financial
assistance to local administrations' public works projects to help cut
national spending," he said.
"Depending on the (national) government's fiscal conditions, such
assistance should be varied," he added. "It is one option that we
revise the cost of each public works project."
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