Commerzbank: According to IMF rules, Japan still has two windows to intervene in the yen.

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Golden Finance reported that on July 1, a German commercial bank said that, under the rules of the International Monetary Fund (IMF), if Japan wants to maintain its status as a freely traded currency, then from now until November it can only intervene in the exchange rate another two times, with each intervention lasting no more than three consecutive trading days. “In other words, Japan’s available resources are limited, and the market has realized that,” strategy officer Michael Pfister wrote in the report. The interventions must be carried out at times when they can have the greatest impact at the lowest possible cost. To help minimize the operational costs for Japanese authorities, Japanese yen liquidity should also be at a relatively low level when they intervene in the market. “Public holidays are especially suitable for this; fortunately, the U.S. will have a long Independence Day weekend this week.”
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