Japan’s Aso: BOJ is banned from buying foreign as it affects currency movement

Japanese Finance Minister Taro Aso is back on the wires now, via Reuters, this time speaking about the foreign bond purchases.

Key Headlines:

Have to be very careful about foreign bond purchases.

The BOJ is banned from buying foreign bonds for the purpose of affecting currency movement.

BOJ is doing easing as part of the anti-deflation policy, not to affect currency movement.

Foreign bond purchases if allowed would basically mean FX intervention.

That may cause misunderstanding in the global community.