Exchange Rate interventions by Bank of Japan
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Code : INB0016
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Region : Japan
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Exchange Rate History of Japan Prior to 1871, Japan had been using various coins as currency. Till that time, the major currencies were silver coins. In 1871, the yen, which means "round object" became the Japanese official coin under the ruling Meiji government. After World War II, a different exchange rate regime came into force. It was a period of economic instability across the globe. The exchange rate was introduced in Japan for the first time in 1949 based on the currency value of other countries. The Japanese yen was pegged at 360 yen per dollar... Louvre Accord The goal of the Louvre Accord was to stabilize the international currency markets and halt the continued decline of the US dollar caused by the Plaza Accord. After two years of implementation of the Plaza Accord, it was found that the agreement had not solved the US trade deficit problem. During the two-year period after 1971, export trading of the United States had not achieved any significant growth. Therefore, the financial deficit problem of the US was the same as it had been in 1971... Post Louvre Accord The period between roughly 1985 and 1990 was a time of unparalleled prosperity in Japan. Economists called the era the Japanese Bubble period. The Japanese economy bubble started taking shape in September 1985 when Japan and five other nations (the US, Germany, the UK, France, and Canada) signed the Plaza Accord in New York. As a result of this agreement, Japanese companies went in for various overseas buys and created cheaper foreign assets overseas... |
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