Japanese Finance Minister Qaeda suggested that the Bank of Japan may allow the redemption of assets denominated in foreign currencies to reduce pressure on the yen. Part of the problem for the yen in recent months has been that central banks are actively involved in foreign exchange intervention is largely preferred to convert their dollar reserves into "safe" currencies such as yen. For example, last week the SNB announced that it has reserves of 12.2 billion yen for chf in the third quarter. The People's Bank of China also was a major buyer of Japanese government securities in the first half.
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