Weekend – Japan PM Kishida once again says will have ‘discussions’ with new BOJ governor

We’ve been tracking this for months now as it moved through various stages.

First there were rumours, then denials, then confirmations and then Kishida himself confirmed it in a radio interview:

Over the weekend Kishida said the same thing again:

• “Under the new BOJ governor, we must discuss the relationship between the government and the BOJ,”

Bank of Japan Governor Kuroda’s term finishes up on April 8. Kishida himself has the final say on who the new governor will be.

A new agreement between Japan’s government and the Bank of Japan would pave the way for a dilution of the current ultra-easy BOJ and would be supportive of the yen at the margin
Margin

Margin is a
certain amount of collateral a trader places with a broker when he wants to
trade with borrowed funds. This is done with a margin account, and it lets you
to trade with leverage, increasing your buying power and multiplying your
potential profit. Of course,
trading on leverage increases both the potential profit and potential loss.
Generally, the margin requirements are low, say 3% minimum depending on the
instrument, and to open a position you’re required to set aside a certain
amount called “initial margin” that varies on different securities. Margin
ExplainedIf you don’t
close a position at the end of the trading day, then you need to be above a
certain threshold called “maintenance margin”, which is a minimum amount of
equity in your margin account. The equity
amount comprises also your current trading position, so if your position
increased in your favour, you may very well be above the limit set by the
broker, but if your position loses a lot and the sum of your account value and
the position is below the maintenance margin, then you will get the infamous
“margin call”. The margin
call is your broker requiring depositing more in your account to satisfy the
limits or your position will be automatically force closed.

Margin is a
certain amount of collateral a trader places with a broker when he wants to
trade with borrowed funds. This is done with a margin account, and it lets you
to trade with leverage, increasing your buying power and multiplying your
potential profit. Of course,
trading on leverage increases both the potential profit and potential loss.
Generally, the margin requirements are low, say 3% minimum depending on the
instrument, and to open a position you’re required to set aside a certain
amount called “initial margin” that varies on different securities. Margin
ExplainedIf you don’t
close a position at the end of the trading day, then you need to be above a
certain threshold called “maintenance margin”, which is a minimum amount of
equity in your margin account. The equity
amount comprises also your current trading position, so if your position
increased in your favour, you may very well be above the limit set by the
broker, but if your position loses a lot and the sum of your account value and
the position is below the maintenance margin, then you will get the infamous
“margin call”. The margin
call is your broker requiring depositing more in your account to satisfy the
limits or your position will be automatically force closed.
Read this Term. As this news has progressed through various stages its already been yen supportive. I’d suggest if you think its fully ‘priced in’ you may be a little premature. A reduction of easy policy by the BOJ will bring more yen back into the country and into JGBs.