The Japanese Foreign Exchange market has again been closed -- this time for all this week (Monday 12 March Friday 10 March).
The Japanese Foreign Exchange market has again been closed -- this time for all this week (Monday 12 March Friday 10 March). The move, a reaction to the continuing world currency crisis, has caused a slump in business at shops patronised by foreign tourists, and excited stern warnings from Japanese industrialists.
A Finance Ministry survey has indicted that if the exchange market remains closed after this week business could be seriously disrupted. Financial commentators have predicted that the United States dollar, which suffered badly in the earlier financial crisis which led to the previous closure of the market, should not depreciate much against the Yen when the market reopens this time. Seasonal demand for dollars is one of the reasons supporting the argument. Another strong suggestion is t hat the Bank of Japan will no longer intervene in currency dealings to hold the dollar exchanges rate stable.
Finance Minister Aichi Kiichi will be attending the meeting of finance ministers and central bank governors in Paris on Friday (16 March).