The situation of the forex trading CFDs is going to change surrounding the Japanese yen given the fact that the Japanese government has decided to intervene.

The Japanese forex market has been facing a major downfall, which has completely drowned the Japanese forex CFDs. 

The Japanese Government is Intervening

However, as the situation is getting out of hands, the government of Japan has decided that it is going to intervene.

The Japanese has become one of the biggest and most dramatic things in the forex trading news. The Japanese government is showing a lot of aggression against the entities responsible for bringing down the value of the yen.

Initially, as the price of the Japanese yen started to fall and hit more than 30 year low versus the USD, the Japanese government issued a warning.

Japanese Government Issued Warning

In the warning, the Japanese government asked the forex traders and forex brokers not to sell the Japanese yen in their possession.

The government stated that the selling of the yen was only making things worse for their economy as the price of the yen would fall dramatically. 

However, the investors were only trying to reduce their losses and in that attempt, they were causing huge harm to the Japanese yen.

Despite the warnings, the traders did not stop and then the government had to intervene. The government of Japan reportedly invested money in favor of the Japanese yen.

This way, the Japanese government artificially increased the trading price of the yen, and that was in September 2022.

The New Warnings have been given

As expected, the intervention only helped the trading price of the Japanese yen for a short while. After that, the trading price of the Japanese yen started to decline again.

The traders would go onto sell the Japanese again to recover their losses. However, the Japanese government is at it again and this time again, the government plans on investing billions of dollars.

Given the recent developments, many brokerages have indeed halted trading of CFDs. This means that the investors cannot predict whether an asset’s price would be high or low after the mentioned time. 

This is a huge setback for the forex investors as they cannot trade in the Japanese yen if they wanted to. Despite the recent downtrends, the Japanese yen had performed well against the dollar.

The government is literally ordering the investors not to sell the Japanese yen in their possession. Now the forex trading CFDs are also down for the Japanese yen.

Warning Issued by the IMF

Due to the recent developments, the International Monetary Fund (IMF) issued a statement that was for countries such as Japan demonstrating forex intervention.

According to the statement by the IMF, the countries must avoid going for intervention to boost the trading price of the Japanese yen. 

As per the international regulator, it is important to keep balance between the forex market and the economy. If the Japanese government intervenes, then it would end up creating imbalance in the yen’s market situation. 

The IMF claimed that although the Japanese yen may recover for a short period, it may not stick around for a longer period. 

Counter Statement by the Japanese Government

In response to the IMF’s statement, the Japanese government stated that their economy is currently dropping. Therefore, it is important and necessary for them to intervene.

Even the Finance Minister of Japan stated that they will do whatever they can to help recover the trading price of the Japanese yen. 

This means that the government of Japan has made it clear to the foreign authorities that it will not stop just because the IMF things it is not right to intervene.

The officials at the Japanese government stated that they would continue intervening until the value of the Japanese ends up moving towards recovery. 


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