"The reason foreign central banks create credit in the local currency is to mop up dollars earned by their trade surpluses."
That is not the only reason. I hope we all haven't forgotten 2004 when Japan sold TONS of Yen to prevent a rise against the USD. They were printing like mad, if I remember correctly they used somewhere around $250 billion for intervention in that year alone.
Just look at these 3 months!!!
mof.go.jp
"May 12, 2004
Ministry of Finance
- Total amount of foreign exchange intervention operations for the period from January through March 2004: ¥ 14,831.4 billion
- Daily operations
Date Total amount of the day Currency pairs
Jan 2, 2004 ¥ 380.4 billion
the US dollar (bought) the Japanese yen (sold)
Jan 5, 2004 ¥ 895.1 billion
the US dollar (bought) the Japanese yen (sold)
Jan 6, 2004 ¥ 818.5 billion
the US dollar (bought) the Japanese yen (sold)
Jan 7, 2004 ¥ 582.2 billion
the US dollar (bought) the Japanese yen (sold)
Jan 8, 2004 ¥ 792.2 billion
the US dollar (bought) the Japanese yen (sold)
Jan 9, 2004 ¥ 1,666.4 billion
the US dollar (bought) the Japanese yen (sold)
Jan 12, 2004 ¥ 57.1 billion
the US dollar (bought) the Japanese yen (sold)
Jan 13, 2004 ¥ 188.2 billion
the US dollar (bought) the Japanese yen (sold)
Jan 14, 2004 ¥ 207.1 billion
the US dollar (bought) the Japanese yen (sold)
Jan 15, 2004 ¥ 162.3 billion
the US dollar (bought) the Japanese yen (sold)
Jan 16, 2004 ¥ 438.6 billion
the US dollar (bought) the Japanese yen (sold)
Jan 22, 2004 ¥ 24.3 billion
the US dollar (bought) the Japanese yen (sold)
Jan 23, 2004 ¥ 157.5 billion
the US dollar (bought) the Japanese yen (sold)
Jan 26, 2004 ¥ 2.1 billion
the US dollar (bought) the Japanese yen (sold)
Jan 27, 2004 ¥ 188.1 billion
the US dollar (bought) the Japanese yen (sold)
Jan 28, 2004 ¥ 226.4 billion
the US dollar (bought) the Japanese yen (sold)
Jan 29, 2004 ¥ 11.2 billion
the US dollar (bought) the Japanese yen (sold)
Jan 30, 2004 ¥ 23.8 billion
the US dollar (bought) the Japanese yen (sold)
Feb 2, 2004 ¥ 251.2 billion
the US dollar (bought) the Japanese yen (sold)
Feb 3, 2004 ¥ 889.3 billion
the US dollar (bought) the Japanese yen (sold)
Feb 4, 2004 ¥ 88.4 billion
the US dollar (bought) the Japanese yen (sold)
Feb 6, 2004 ¥ 109.0 billion
the US dollar (bought) the Japanese yen (sold)
Feb 9, 2004 ¥ 3.0 billion
the US dollar (bought) the Japanese yen (sold)
Feb 10, 2004 ¥ 116.0 billion
the US dollar (bought) the Japanese yen (sold)
Feb 11, 2004 ¥ 402.1 billion
the US dollar (bought) the Japanese yen (sold)
Feb 12, 2004 ¥ 133.6 billion
the US dollar (bought) the Japanese yen (sold)
Feb 13, 2004 ¥ 386.3 billion
the US dollar (bought) the Japanese yen (sold)
Feb 16, 2004 ¥ 84.2 billion
the US dollar (bought) the Japanese yen (sold)
Feb 17, 2004 ¥ 158.4 billion
the US dollar (bought) the Japanese yen (sold)
Feb 18, 2004 ¥ 241.0 billion
the US dollar (bought) the Japanese yen (sold)
Feb 19, 2004 ¥ 100.0 billion
the US dollar (bought) the Japanese yen (sold)
Feb 20, 2004 ¥ 10.7 billion
the US dollar (bought) the Japanese yen (sold)
Feb 23, 2004 ¥ 118.1 billion
the US dollar (bought) the Japanese yen (sold)
Feb 24, 2004 ¥ 121.1 billion
the US dollar (bought) the Japanese yen (sold)
Feb 25, 2004 ¥ 94.7 billion
the US dollar (bought) the Japanese yen (sold)
Feb 27, 2004 ¥ 169.5 billion
the US dollar (bought) the Japanese yen (sold)
Mar 1, 2004 ¥ 149.3 billion
the US dollar (bought) the Japanese yen (sold)
Mar 2, 2004 ¥ 421.9 billion
the US dollar (bought) the Japanese yen (sold)
Mar 3, 2004 ¥ 79.9 billion
the US dollar (bought) the Japanese yen (sold)
Mar 4, 2004 ¥ 197.4 billion
the US dollar (bought) the Japanese yen (sold)
Mar 5, 2004 ¥ 1,244.6 billion
the US dollar (bought) the Japanese yen (sold)
Mar 8, 2004 ¥ 809.0 billion
the US dollar (bought) the Japanese yen (sold)
Mar 9, 2004 ¥ 723.6 billion
the US dollar (bought) the Japanese yen (sold)
Mar 10, 2004 ¥ 69.3 billion
the US dollar (bought) the Japanese yen (sold)
Mar 11, 2004 ¥ 362.9 billion
the US dollar (bought) the Japanese yen (sold)
Mar 15, 2004 ¥ 407.5 billion
the US dollar (bought) the Japanese yen (sold)
Mar 16, 2004 ¥ 67.8 billion
the US dollar (bought) the Japanese yen (sold)" |
