Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
Real-time insight on key fixed income and fx markets.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Bank of Japan officials see just a slight risk that the huge fiscal spending by the U.S. government will make it more difficult for commercial banks there to raise dollar funds unless demand for the greenback spikes due to unstable financial markets, MNI understands.
Commercial banks, including Japanese banks, in the U.S. have considerable dollar funds from corporate deposits following U.S. stimulus measures and monetary easing. While higher U.S. interest rates will raise funding costs, dollar liquidity won't be hit, in the BOJ's view. Nevertheless, BOJ officials continue to keep a close eye on Japanese banks as the central bank considers foreign-currency funding as one of three major risks for the stability of the financial system with the other two being credit costs and losses on securities.
The BOJ and other major central banks have announced will suspend three-month dollar operations in July. They reduced the frequency of one-week dollar operations to once a week from three times per week in September 2020.