The website for Japan’s central bank, the Bank of Japan, provides information about its mission and its policy actions. Its address is www.boj.or.jp/en.
1. Use this website to review the outline of the Bank of Japan’s objectives. Summarize the mission of the Bank of Japan. How does this mission relate to intervening in the foreign exchange market?
2. Review the minutes of recent meetings by Bank of Japan officials. Summarize at least one recent meeting that was associated with possible or actual intervention to affect the yen’s value.
3. Why might the foreign exchange intervention strategies of the Bank of Japan be relevant to the U.S. government and to U.S.–based MNCs?