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.
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