Govt, BOJ Discuss Response to Market Volatility during 10-Day Holiday

April 20, 2019

Tokyo- The Finance Ministry, the Financial Services Agency and the Bank of Japan held a meeting on Friday to confirm responses to wild fluctuations on financial markets that may occur during Japan's coming 10-day holiday related to the Imperial succession.

The foreign exchange monitoring system will be kept at the business-day level, while departments responsible for overseeing banks and the Tokyo Stock Exchange will get prepared for swift communications.

Many major overseas economic indicators, such as U.S. jobs data for April, are slated to be announced while Japan is in the holiday period from April 27.

"We confirmed our responses in the event of financial market volatility," Vice Finance Minister for International Affairs Masatsugu Asakawa told reporters after the meeting.

The FSA asked banks to put 30 pct more cash per day in their automated teller machines than during the normal Golden Week holiday period from late April and early May.

Regulators will beef up surveillance for any questionable stock market activities during the period immediately before the holidays, when trading volume is expected to be low. The TSE will increase the number of personnel for monitoring market activities.

Asakawa said that Finance Minister Taro Aso is planning to visit the Unites States next week to meet with Treasury Secretary Steven Mnuchin. Jiji Press