Yen plunge in March 2022 | About the BOJ's limit operation

About the recent dollar yen

The skill of Governor of the Bank of Japan

Although there are criticisms of the depreciation of the yen against the Governor of the Bank of Japan Kuroda, I think there are some parts that I cannot help.

It is true that the depreciation of the yen will bring profits to the export industry, and the tourism industry will also be a factor in curbing the outflow of the yen overseas.

Of course, if the depreciation of the yen becomes permanent, not only the import industry but also the raw materials in the export industry will increase, so I think it is better to have some waves.

Some have said that the BOJ's limit operation will accelerate the depreciation of the yen, but my impression is that it will only temporarily plummet and then balance.

Rather, the limit operation often fell during the period.

In fact, the dollar-yen pair has been on a downtrend after hitting a high of 125 on the first day of the limit operation.

You may get a flashy impression that the limit operation for 3 consecutive days will cause a strong depreciation of the yen, but this is a speculation that the momentum will be dispersed by distributing the order period and the yen will not collapse.

And I don't know if there is actually a Kuroda ceiling / Kuroda line, but it is possible that they were preparing to hold it firmly by preparing an intervention there.