Restrictions on Yen Conversion

Japanese: 円転換規制 - えんてんかんきせい
Restrictions on Yen Conversion

A method of foreign exchange control to restrict the inflow of short-term funds from abroad. Yen conversion refers to the act by Japan's foreign exchange banks of taking in short-term foreign currency funds from overseas and converting them into yen funds for use in domestic loans, etc. However, because there was a concern that yen conversion would undermine the effectiveness of domestic monetary tightening policies, this restriction was implemented in February 1968 (Showa 43).

The yen conversion restrictions applied to foreign exchange banks' borrowing from American banks, eurodollars, and free yen deposits, but due to increasing criticism from overseas that the measures were a step backward in the liberalization of foreign exchange controls, the government and the Bank of Japan gradually relaxed the restrictions, and in June 1977 they were abolished and replaced with indirect restrictions on foreign exchange holdings, but these were also abolished in June 1984.

[Tsuchiya Rokuro]

Source: Shogakukan Encyclopedia Nipponica About Encyclopedia Nipponica Information | Legend

Japanese:

短期資金が外国から流入するのを規制する為替(かわせ)管理の一方法。円転換とは、わが国の外国為替銀行が海外から短期の外貨資金を取り入れ、これを国内の貸出などに運用するために円資金にかえることをいうが、円転換によって国内の金融引締め政策の効果が損なわれるおそれがあったので、1968年(昭和43)2月からこの規制が実施された。

 円転換規制の対象は、外国為替銀行のアメリカの銀行からの借入れ、ユーロ・ダラー、自由円預金の取入れなどであるが、為替管理の自由化に逆行する措置であるとする海外からの批判が厳しくなったため、政府、日本銀行は徐々に規制を緩和し、1977年6月にはこれを廃止して間接的規制である外国為替持高規制へ移行したが、1984年6月にはそれも廃止された。

[土屋六郎]

出典 小学館 日本大百科全書(ニッポニカ)日本大百科全書(ニッポニカ)について 情報 | 凡例

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