3 October 2001, 14:17  Shiokawa wants BOJ to keep at least 8 tril. yen cash balance

TOKYO, Oct. 3 (Kyodo) - Finance Minister Masajuro Shiokawa said Wednesday he wants the Bank of Japan (BOJ) to keep the balance of current accounts held at the central bank by private financial institutions to at least 8 trillion yen to maintain ample liquidity in the banking system. The BOJ "has been keeping the balance at a high level to deal with settlement needs at the end of last month, and I do not want the balance to shrink below 8 trillion yen," Shiokawa told a regular news conference. On Sept. 18, the BOJ decided to keep the balance at more than 6 trillion yen to ensure enough liquidity following the Sept. 11 terror attacks on the United States. The cash balance grew to an estimated 12.8 trillion yen last Friday to meet increased demand for funds ahead of the Sept. 30 corporate closing of books for the fiscal first half. Shiokawa said he is satisfied with the BOJ's monetary policy. Meanwhile, Shiokawa said he will propose no joint actions to deal with the dollar's slide at Saturday's meeting of Group of Seven (G-7) top financial officials in Washington. He said each country needs to deal with the foreign exchange market to achieve an exchange rate that reflects economic fundamentals. Japan has been conducting a series of dollar-buying, yen-selling market interventions since Sept. 17 to arrest the rise of the yen. Shiokawa said he will tell his G-7 counterparts at the weekend meeting that Japan's economic fundamentals are not bad and that the Japanese government will promote deregulation to stimulate the economy. The G-7 countries are Britain, Canada, France, Germany, Italy, Japan and the U.S.

© 1999-2022 Forex EuroClub
All rights reserved