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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (3276)	3/31/2004 6:22:44 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 116555

for the JPY10 trillion used in Q1 interventions, it appears they used the Foreign Exchange Special Account, which was set up back in the 1950s, i believe, for sterilization purposes. i summarized Nikkei's report on this agreement between MOF and BOJ here: #reply-19939961 in my previous message to you i provided a link to BOJ site which shows the repo balance with FESA at 6.1489 trillion yen, or 61% of this agreed-upon intervention limit, achieved thru end-Feb. i am not sure what FEFBs are and how they relate (if at all) to FESA. matters are further confused because the translations into English are not uniform. i think to figure out what is really going on would require several hours consultation with a Japanese investment banker or bond-market specialist. or you can read a book written by them--Japan's Policy Trap. One question I had for the thread is this? There needs to be a supplemental budget for FEFBs for the MoF to carry on (as they can't print Yen, only the BoJ can)past March, in a meaningful fashion. Have they been "adequately" funded for $30-$50 billion a month interventions? from what i can tell, a similar arrangement to the one described by Nikkei in the above link would be required, starting April 1. i assume MOF has ultimate say over whether this happens. it could be that the latest JPY10 trillion "experiment" did not yield the desired result, so they may decided to just flush it.