Currency intervention a must, G7
CURRENCY intervention is a must to help Japan and not complicates the woes the nation is facing after the 8.9 magnitude earthquake followed by a destructive tsunami and nuclear crisis. The Group of Seven industrial nations unanimously agree to jointly intervene in the currency market.
Days after suffering the worse disaster the Japanese people ever experienced, the value of yen is slowly rising due to market speculations and fear for a nuclear meltdown and in return hurting the economy.
“Given yen moves after the tragic events that hit Japan, the United States, Britain, Canada and the European Central Bank have agreed with Japan to jointly intervene in the currency market,” Finance Minister Yoshihiko Noda told.
“When Japan is in such a state, it’s extremely meaningful for G7 countries to cooperate and take coordinated action to stabilize financial markets,” he added.
Authorities will start buying more dollars in the market to strengthen its currency. The last time Tokyo did the same things was on September 15, 2010, when it sold 2.13 trillion yen in exchange of dollars during the recession thatbesets the world economic powers.-Marjorie Dacoro