global join hands to curb the appreciation of the yen during the operation, United States Federal Reserve (Federal Reserve) because of the yen and the yen assets not much and is difficult to make a greater contribution. This reflects the dollar as the world's principal reserve currency status, at least relative to other assets on the balance sheet, the Federal Reserve did not need a lot of accumulation of foreign exchange assets. This reflects the United States policy makers not consistent policy of intervention in foreign exchange market.
the Federal Reserve on Friday (18th) exactly how much to sell the yen? This problem due to lack of access to official confirmed that the traders had no consensus, this should come as no surprise. But there is one fact that is crucial, and that is how much the Fed will have no available for selling of the yen.
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EU Summit gradually line gradually near euro bad followed dollars all fell dollars index challenge 16 months low Japan Central Bank then injection 2 trillion yen Europe Central Bank April interest rates expected warming Portugal GDP or will appears atrophy o plus Central Bank entered policy wait-and-see period [RMB premium][market Center]under fed latest disclosure of 2010 fourth quarter data , Fed a total of $ 11.922 billion worth of Yen assets held, including $ 3.882 billion worth of yen in cash and $ 8.039 billion worth of yen-denominated securities. Did not disclose the types of securities. Not many other foreign currency assets held by the Federal Reserve, conspicuous only 14.127 billion dollars worth of assets in euro.
only the numbers, Yen assets held by the Federal Reserve did not seem to be small. The problem is that over US $ 2.6 trillion in total assets held by the fed, but also in the foreign exchange market, the yen rose against the dollar daily average trading volume of us $ 570 billion, fed it in the hands of the yen if you want to set off a wave on the Forex market, I'm afraid is difficult.
some people may think that the Fed held is not important how many yen as the Federal Reserve can play an intermediary role, instead of a large Yen-holders, for example, Japan's Central Bank (Bank of Japan) to sell their own do not hold the yen, the market so as to achieve the same effect.
as stressed by the reform of policy makers in the mortgage market, market participants to own ya, Bao, assume the possible risks of operation. All this shows that the participation of the Federal Reserve is important, but at the same time to a large extent, the involvement of the Federal Reserve has symbolic significance.
RBC Securities Economist Tom Porcelli said, in this intervention, the real influence, not from the seven major industrial countries (G7) non-Japan Member States, because their Yen assets is too limited; only Japan's Central Bank has enough yen, where necessary, to shake the market, only Japan's Central Bank to turn.
observers believe that the Fed's intervention was too small, in any case will not affect the condition of assets and liabilities of the Federal Reserve, has no effect on the economy. Company Ray Stone McCarthy Research said the study, compared to the fed for asset management operations and daily, the Fed seems to be blinking eye at a time.
Wrightson prediction of ICAP said agreed with the intervention of the Federal Reserve foreign exchange market, there may be one reason; apart from the moral responsibility, at least some members of the Federal open market Committee would like to see the Fed Yen assets be zeroed. This context helps to eventually balance sheet of the Federal Reserve cut down while also restricting the future decision maker for some of the intervention in currency markets for the purposes of space.
