According to Goldman Sachs BoJ receives detailed directives from Japan’s MOF about FX action,
Goldman Sachs analysts describe how the Japanese government intervenes in the foreign exchange market.
The Ministry of Finance has the authority to carry out FX intervention (MOF). FX interventions are carried out by the BoJ on behalf of and as directed by the MOF.
Interventions take place through the Foreign Exchange Fund Special Account (FEFSA), which is controlled by the MOF.
Based on pertinent market information supplied by the BoJ, the MOF provides the BoJ with detailed directions for FX intervention.
