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| Japan to buy Europe’s ESM bonds said Finance Minister Taro Aso |
| Tokio, 08.01.2013 |
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| Japan’s Finance Minister Taro Aso told reporters today at a briefing in Tokyo that his country is going to buy the European Stability Mechanism bonds to help weaken the yen and support Europe at the same time.
“The financial stability of Europe will help the stability of foreign exchange rates, including the yen. From this perspective, Japan plans to buy ESM bonds”, said Taro Aso, but the purchase amount is undecided yet.
The transactions will be funded by Japan’s foreign exchange reserves, and while this move will help Prime Minister Shinzo Abe weaken the yen it will also ease the criticism he has received from the U.S. and South Korea in the past two months.
The yen fell about 8% against the dollar since mid-November since Abe pledged to adopt aggressive easing measures as he faces the task of reviving growth after the economy contracted in the second and third quarters of last year.
“The Europeans would be happy to see Japan buy ESM bonds, so Japan can avoid criticism from abroad and at the same time achieve its objective”, said former central bank official Masaaki Kanno who now works for JPMorgan Securities Japan.
The European Stability Mechanism will hold its first debt auction later today, offering three-month notes worth about 2 billion euros ($2.6 billion), and following the news the dollar/yen pair fell to 87.35 while the euro/yen pair fell to 114.66 from the opening at 115.13.
odkaz na stránku. |
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Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
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