The Bank of Japan (“BoJ”) is the central bank of Japan, responsible for handling and issuing currency and treasury securities, mandating monetary policy and overall controlling the stability of Japan’s economy.
Like most other central banks, the BoJ’s primary focus is controlling inflation, which consequently maintains price stability and ensures the economy’s overall health. However, uniquely (because Japan’s economy depends heavily on exports), the BoJ has a significant interest in preventing its currency (the yen) becoming overly strong. The BoJ has even been known to intervene in the open market to artificially weaken the yen against the U.S. dollar or the euro.
The BoJ’s monetary policy committee is made up of the governor, two deputy governors and six other miscellaneous members who meet either once or twice in any given month. The committee is known to be very vocal when it becomes concerned about excess currency volatility and the strength of the yen.