The Bank of Japan (BOJ) has completed the preparations necessary to begin buying ETFs as part of its asset purchase strategy.
The bank could start trading on ETFs as early as tomorrow, although purchases will be guided by market conditions. The programme is expected to run until around the end of 2011, with the bank reserving a 450bn yen pot for ETFs out of a total 5trn yen asset purchase fund. The move is part of the bank's Asset Purchase Programme, introduced in October as a temporary measure to encourage a decline in long-term interest rates. On 5 November the bank explained that its ETF acquisition has "the aim of encouraging the decline in risk premiums to further enhance monetary easing". When th...
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