"The financial stability of Europe will help the stability of foreign-exchange rates, including the yen"
- Japanese finance minister Taro Aso
Japanese finance minister Taro Aso said on Tuesday that Japan will buy bonds issued by the European Stability Mechanism and euro-area sovereigns in order to foster financial stability. The government will use foreign exchange reserves to make purchases, however, Aso refused to say how much bonds will be bought. In November the country held $1.27 trillion in foreign reserves, according to the finance ministry data. This move will help soothe the Eurozone's debt problems and stabilize the Yen, while Japan has so far bought about €7 billion worth of bonds issued by the ESM. Japanese new Prime Minister Shinzo Abe claimed earlier that he and his government will do whatever it takes to boost economic growth.
"The financial stability of Europe will help the stability of foreign-exchange rates, including the yen," Aso told reporters today at a briefing in Tokyo. "From this perspective, Japan plans to buy ESM bonds," he said. The purchase amount is undecided, Aso said.
"From this standpoint and based on Europe's further efforts on financial stability, Japan will purchase a portion of ESM bonds continuously by utilising foreign reserves," he added.
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