Japan’s MOF gives BoJ specific instructions for FX intervention – Goldman Sachs

Analysts at Goldman Sachs explain the process of how the forex market intervention is conducted by the Japanese authorities.

Key quotes

FX intervention is carried out under the authority of the Ministry of Finance (MOF).

The BoJ conducts FX interventions on behalf of and at the instruction of the MOF. The Foreign Exchange Fund Special Account (FEFSA), which falls under the jurisdiction of the MOF, is used for interventions. The MOF gives the BoJ specific instructions for FX intervention based on relevant market information provided by the BoJ.

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