G7 Statement on Coordinated FX Intervention
March 18, 2011
18 March 2011 - Statement of G7 Finance Ministers and Central Bank Governors
We, the G7 Finance Ministers and central bank governors, discussed the recent dramatic events in Japan and were briefed by our Japanese colleagues on the current situation and the economic and financial response put in place by the authorities.
We express our solidarity with the Japanese people in these difficult times, our readiness to provide any needed cooperation and our confidence in the resilience of the Japanese economy and financial sector.
In response to recent movements in the exchange rate of the yen associated with the tragic events in Japan, and at the request of the Japanese authorities, the authorities of the United States, the United Kingdom, Canada, and the European Central Bank will join with Japan, on 18 March 2011, in concerted intervention in exchange markets. As we have long stated, excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will monitor exchange markets closely and will cooperate as appropriate.
Posted in Intervention, forex blog, japan quake yen
content rss
March 21st, 2011 at 9:09 am
Be a Conscientious Trader
Dear traders,
We all have watched on TV how the recent 8.9 earthquake had completed destroyed so many lives and homes of tens of thousands Japanese people. It’s expected that it will take hundreds of billions of dollars to rebuild their homes and their businesses. As traders, we know that many Japanese have invested their savings overseas and it is expected that they would need to repatriate their money to rebuild their homes and businesses. We know that the Japanese Yen will strengthen in the foreseeable future. Some speculators have already taken advantage of this and central banks around the world have helped Bank of Japan to weaken the strength of the Yen to stabilize the Japanese financial system.
I appeal to all traders out there. Please don’t short-sell the USD/JPY or any JPY pairs as this will have a huge impact when the Japanese people repatriate their money back home to rebuild their homes and to re-start their livelihood. When the Yen is strong, Japanese investors will get less for their overseas investments when the money is converted back into Japanese Yen. As traders, we should not benefit or make a living out of someone’s sufferings. Please give the Japanese people a chance to rebuild their lives.
If you’re a trader, adviser, analyst or investor, please be mindful and conscientious when you trade, advise or make your investment decision. As participants in the financial market, we all can help in reducing the suffering of the earthquake victims.
May the kindness that you’ve shown to the Japanese earthquake victims be turned to you in many thousands times over.
Thank you.
Conscientious Trader