Japan extends a control on the foreign exchange market

The Japanese government has decided to extend until September its surveillance of the foreign exchange market by requiring participants to report their positions daily.

This measure, set up in summer 2011 and already extended since, should be completed in late June, but the Ministry of Finance considers it "always necessary to carefully observe the evolution of markets."

The authorities want to identify and hedge fund managers ("hedge funds") and other investors seeking short-term profits and officials sometimes considered excessive volatility of exchange rates, the yen tends to serve as a safe haven against the dollar and the euro.

Although industry professionals consider the control of short-range as limited to large financial institutions active in the Japanese market and not abroad, the purpose of government is in them to exert psychological pressure on profiteers showing them that he has an eye.

The government decided on 24 August 2011 to implement the system through a set of measures to fight against the dreadful rise of the yen at the time.

He decided to pursue this same scrutiny if the Japanese currency falls again significantly in the past six months due to the strengthening of monetary easing from the Bank of Japan (BoJ) and the economic policies of Prime Minister Shinzo Abe arrived right to power in December.