Tokyo has announced the creation of a 7.600 trillion yen emergency fund to combat local currency appreciation. The fund will make low-interest loans available to Japanese industry for one year through the Japan Bank for International Cooperation. The Asian country thus hopes to encourage companies to exchange yen for dollars during the purchase of foreign companies and natural resources, by reducing the value of the yen against the greenback. The government will also open a 100 billion yen investment fund to facilitate the overseas expansion of small and medium-sized enterprises. It is the first time that Japanese Japan has used special funds to help the industry buy foreign assets. However, analysts were skeptical about this measure, because they consider the fund too small to guarantee tangible results in a market that sees daily trades of 50 trillion yen a day. And the Japanese currency has shown no signs of abating, continuing its upward run.
http://www.asahi.com/english/TKY201108250283.html
