BOJ Yentervention Cost: ¥692.5 Billion

Tyler Durden's picture

For those wondering how much the latest intervention in the Yen cost to the BOJ, we now have our answer. According to the Japanese Ministry of Finance, Japanese authorities intervened in the foreign exchange markets to the tune of Y692.5 billion in March. Market News elaborates: " The data from MOF confirmed that the Japanese authorities intervened in the markets from March 18, although MOF did not confirm the actual dates the Bank of Japan intervened on its behalf. However, Japan Finance Minister Yoshihiko Noda had already announced intervention had started on that Friday."

The yen-selling intervention was part of a co-ordinated move by the Group of Seven industrialized nations, acting in concert to aid Japan in the wake of the March 11 Tohoku-Pacific Ocean Earthquake and tsunami.

The move was triggered as the dollar-yen exchange rate fell to an all-time low at Y76.25. The pair rebounded to Y81.75 as the Bank of Japan started the intervention.

In a statement, the G7 said "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."

The intervention in the currency markets was the first such action by the Japanese authorities since September 2010. It was the first co-ordinated intervention by the G7 nations since 2002.

And now we know what 300 pips cost in real money. For now, the intervention is working.