One article making many Japanese laugh their heads off is the one written by a S. Korean economist who insists that Japan conclude unlimited currency swap agreement with S.Korea, guaranteeing that South Korea uses uninhibitedly Japanese Yen to secure U.S. dollars.
It is Swap. So, Japan is entitled to do the same but it is unlikely for Japan to do so. In a process of securing USD. S. Korea will exchange Japanese Yen for USD, thereby helping ease strength of JPY against USD while S. Korea will secure much needed USD.
However, unlimited swapping is expected to have limited impact on appreciation of Yen since Yen has been stronger due to financial crisis in Europe and uncertain U.S. economic recovery. Many Japanese see no justifiable reason why Japan has to help South Korea in FX.
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