Bank of Japan
From The Free Forex Encyclopedia
The Bank of Japan is an organization that contributes to the stability of the daily lives of the people and sound development of the national economy by appropriately controlling the volume of money in the economy and ensuring the smooth circulation of money.
The role of the Bank of Japan is to maintain stability within the country's financial framework. It is neither a government organization or a privately owned business, but takes a position almost above society. It is responsible for issuing bank-notes, controlling currency and monetary policy, and keeping the Japanese financial kingdom stable. Its method for stabilizing the finances of Japan is by keeping strict control over how currencies are traded and utilized.
With over 32 branches (quite a few overseas), the Bank of Japan holds a high status in a country that values respect and innovation. The main headquarters is located in Tokyo, where it sits on a historical throne. It was established as a result of the Bank of Japan Act of 1882, and is run by a group of individuals known as "The Policy Board."As a "central" bank, if is more interested in the position of Japanese currency than anything else. The Bank of Japan has to hold both foreign exchange reserves(through the issuing of government bonds) and gold reserves, in order that their currency is traded effectively. It also oversees the exchange rates, managing some while allowing others to free float (change with the market). Still other exchange rates are influenced on a small level, bringing a cross between a managed/free rate, which is sometimes called a "dirty float."