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Fiat Brothers to the Rescue

I have to say that I was perfectly correct yesterday, Japan did intervene in their currency market and now they have coerced their group of seven brethren to give them a helping hand.  According to Bloomberg:

The Group of Seven will jointly intervene in the foreign exchange market for the first time in more than a decade after Japan’s currency soared, threatening its recovery from the March 11 earthquake.

Japan began the effort, sending the currency down 3.1 percent against the dollar at 9:34 a.m. in Tokyo. Each of the G-7 members will sell yen as their markets open, Japan’s Finance Minister Yoshihiko Noda told reporters in Tokyo today. The G-7 said in a joint statement after a conference call of its finance ministers and central bank chiefs that it will “provide any needed cooperation” with Japan.

Japan’s central bank also said in a statement that it will pursue “powerful monetary easing” as policy makers sought to reduce the threat the world’s third-largest economy sinks into a recession.

PRINT! PRINT! PRINT! PRINT!


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Posted in Economics, Markets, Politics.

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  1. Mark says

    Why would a central bank need help in devaluing (or stopping the increase in value of) its currency? It should be the easiest thing in the world. Just print whatever amount of JPY is needed and sell them against other currencies in the open market.



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