The Bank of Japan’s yield curve control policy has had a devastating effect on the value of the Japanese yen, driving the currency to a 20-year low against the US dollar.
In its ongoing battle against free-market forces, the Bank of Japan has vowed to keep the money printing press running in order to support Japanese Government Bond (JGB) prices and maintain the 10-year JGB yield at a level not exceeding 0.25%. The relentless buying of JGB with freshly minted yen is one of the main causes of the precipitous fall of the currency.
