According to reports, the measures included steps to support exporters and small firms to cope with the impact of the strong currency. Debt troubles in Europe and the recent downgrade of the US debt forced investors to turn to yen and other safe-haven currencies.
The measures, presented at a meeting of economic ministers and Bank of Japan officials, also stressed on encouraging Japanese firms to sell the yen for the U.S. dollar and other major currencies in accumulating necessary funds for external investments, as well as offering incentives to prevent companies from shifting their production and other facilities abroad, the Kyodo news agency reported.
Japan's Economy Minister Kaoru Yosano quoted Bank of Japan Deputy Governor Kiyohiko Nishimura, who attended Monday's economic ministers meeting, as saying that the bank will closely work with the government and make "decisive policy responses."
Meanwhile, Yosano reportedly said that the new government should never make a request for the BoJ to underwrite its bonds. The Finance Ministry last week offered $100 billion in loans from the country's foreign exchange reserves to encourage Japanese firms to speed up their investment abroad while making the best use of the yen's strength.
Japanese Finance Minister Yoshihiko Noda was elected Monday as the head of the ruling Democratic Party of Japan. He will succeed Prime Minister Naoto Kan who resigned on August 26.
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