2 October 2001, 08:51 Shiokawa - Govt still cautious over dollar movement even at 120 yen
TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the
government is still cautious about the dollar's movements even after
its recent appreciation to above the 120 yen level.
"Even now, we are still alert to the dollar/yen's moves. I feel the
dollar may fall if we stay off our guard, even momentarily," Shiokawa
told a regular press briefing.
"If we see signs of a drastic fall in the dollar/yen, we are ready
to intervene in the market unilaterally, based on our sole judgement,"
he said.
Meanwhile, vice finance minister Haruhiko "Kuroda told me after his
US trip that the administration appreciates Japan's recent efforts to
stabilise the dollar," Shiokawa added.
"I am planning to propose again that G7 countries should cooperate
in stabilising the US currency and providing ample liquidity to cope
with the events after the terrorist attacks," he said.
The G7 meeting of finance ministers and central bank governors will
be held this weekend.
Shiokawa said the Japanese government will stick to its 30 trln yen
limit on new government bond issuance, though within this ceiling some
adjustments may be made.
"There is a possibility that we will have to reorganise the current
fiscal year's budget to cope with demand for additional spending from
ministries and agencies," he said.
Shiokawa said the government will provide support for the domestic
airline industry after the terrorist attacks.
"The government today decided to offer 2 bln usd insurance support
for the airline industry," he said.
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