The BOJ designates “Mr. YCC” to oversee monetary policy
On Monday, the Bank of Japan appointed Seiichi Shimizu, also known as “Mr. YCC” for his expertise in the market and technical aspects of the yield curve control policy, as an executive director responsible for monetary policy.
The hiring of Shimizu is a response to criticism of the central bank’s bond yield control program, which is accused of distorting bond market prices and reducing commercial banks’ margins. The central bank is aiming for a smooth exit from this controversial program.
Shinichi Uchida, appointed deputy governor on Monday, cedes control of monetary policy to Shimizu, who is already one of the six executive directors of the BOJ. As the head of the financial market department in 2016, the 57-year-old career central banker oversaw significant changes in market operations during the implementation of YCC.
He contributed to creating a set of measures to lessen the effects of YCC in 2021 as the chairman of the prestigious department of elite monetary affairs, including phasing out its massive purchase of hazardous assets.
Mari Iwashita, the chief market economist at Daiwa Securities, stated that it is desirable to have someone like Shimizu be responsible for limiting the policy’s side effects when YCC approaches its maximum.
As the COVID-19 epidemic rocked markets in 2020, Shimizu also bargained with foreign colleagues on measures to calm investors. This negotiation experience will likely be useful as concerns over a global banking sector crisis cause markets to tremble.
The executive directors, who answer to the nine-member board, are responsible for dividing up the daily operations of the central bank, including monetary policy, financial market affairs, and international relations.
On Monday, Uchida and former head of the banking regulator Ryozo Himino officially took over Masayoshi Amamiya and Masazumi Wakatabe’s positions as deputy governors of the BOJ. As the current governor Haruhiko Kuroda’s term expires next month, Kazuo Ueda will take over as governor and join the BOJ.
Since the BOJ’s massive bond purchases to defend its yield cap have drawn criticism for distorting the yield curve and depleting bond market liquidity, many analysts anticipate that the YCC will be modified or terminated during Ueda’s five-year term.
China’s agricultural exports to North Korea more than doubled in January and February
According to Chinese customs data released on Monday, China’s total exports to North Korea increased by more than double in the first two months of 2023 compared to the same period last year. Granulated sugar, soybean oil, and rice were among the top exports.
Chinese exports to the small nation increased 161.5% yearly to $300.5 million in January and February. Granulated sugar, wool for wig production, soybean oil, rice, and rubber tires were the leading export commodities in terms of value.
The DongA Ilbo daily of South Korea claimed in mid-February that the North Korean food situation may have worsened as the nation decreased military rations for the first time in more than 20 years.
