Independent Strategist, Olivier Desbarres, looks at the FX Reserve and its current situation.
The yen has failed to materially weaken, despite the Japanese Finance Ministry’s recent verbal intervention. This highlights how a widening policy-credibility deficit can stymie policy-makers’ ability to slow, let alone stop, rapid FX appreciation.
If, and it’s a big if, the Japanese Finance Ministry intervenes in the FX market before the BoJ’s 28th April policy meeting, it will have to be aggressive to be effective.
Read the accompanying article on my website here: http://www.olivierdesbarres.co.uk/fx-reserves-things-considered-equal/
