On the front page of the newspaper today, the Japanese press are focused on the talks between the Finance Ministers in Boca Raton, Fla. The U.S. position wants forex rates determined by market forces. (The US does not want any government entering the markets and intervening to prop up one's own currency.) The Japanese wants stable foreign exchange rates. (The Japanese does not want the US dollar to continue its fall.) The Japanese government has been 'dumping' Yen and buying dollars like there is 'no tomorrow' and has since amassed truckloads of greenbacks. It is unbelievable the amount of forex reserves Japan possesses. At this rate, the Bank of Japan should be renamed as "Federal Reserve Tokyo Board". With the BoJ holding so many dollars the question on the top of my mind is 'What does the BoJ plan on doing?"
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