10 July 2001, 15:01 IMF's Fischer says BoJ has room to weaken yen via looser monetary policy
TOKYO (AFX) - The Bank of Japan has leeway to adopt a looser
monetary policy that would weaken the yen, said International Monetary
Fund managing director Stanley Fischer.
"Obviously neither Japan nor the rest of the world wants the yen to
go crazy but there is room for a more expansionary monetary policy that
would lower the value of the yen," Fischer said in Tokyo.
"Expansionary monetary policy means providing more liquidity and
that would almost certainly drive down the value of the yen."
The BoJ has been under pressure to further loosen monetary policy
to help prod the economy into recovery.
It recently raised reserves in the current account to 5 trln yen
from 4 trln in an attempt to increase liquidity.
© 1999-2024 Forex EuroClub
All rights reserved