Japanese Foreign Exchange Market

A comprehensive overview of the the Japanese foreign exchange market, this text provides a comparative economic analysis of practices and risks as well as related policy issues. After a short introduction to the history of money in Japan, the work focuses on three areas. It looks at the general characteristics of the market such as market participants, trading strategies as well as accounting rules and practices and their influence on attitudes towards risks. In particular, the author searches for an explanation for the large currency losses Japanese firms experienced in recent years. The author then covers the nature of foreign exchange risks, the sources of exchange rate variability, the dangers of derivatives trading and the threats lurking in Japan's large-value interbank payment systems. The book also looks at policy issues, concentrating on prudential regulation and monetary policy co-opertion. Review: A benchmark study documenting the state of the market on the eve of the full liberalization of foreign exchange trading announced by the Japanese government for 1998. After a short historical overview of money and financial markets and institutions in the country, Reszat describes some general characteristics of the foreign exchange market.... - Book News It breaks new and valuable ground.... - Pacific Affairs