Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Tuesday, February 20, 2024, 9:31 am to 9:40 am)

Q.

I would like to ask a question about the effects of the new NISA program. With the start of the new NISA program, retail investors are quite active. They often choose foreign stocks and bonds for their investments. There are some who point out that their investment activities are leading to capital outflows from Japan, resulting in a depreciation of the yen. What do you think of that? 

A.

I have heard some suggestions that, with the start of the NISA program, investments might be shifting towards foreign bonds and other securities, potentially leading to what's known as capital flight, which could be impacting the current foreign exchange market. 
However, exchange rates are determined by various factors, such as economic and fiscal conditions of Japan and other countries, the international balance of payments, trends in monetary policy, as well as investors' forecasts and sentiment. It is impossible to pinpoint a single cause for fluctuations. That is my understanding.
There are various opinions about the causes and effects of the yen's depreciation. Nevertheless, the government will closely monitor the movements of the market with a high level of vigilance.

Q.

Do you mean you find it difficult to comment on questions about any impact of the new NISA on the market? For example, how significant of an impact it has made or whether you believe it hasn't made much of an impact?

A.

Exactly. As I have just mentioned, there are various factors that influence exchange rates. It is difficult to pinpoint one factor, such as the balance of international payments or market sentiment among participants, and determine how much it is contributing individually to the current exchange rate.

Q.

The Nikkei 225 stock index has continued to rise, nearing its all-time high. How do you perceive the current stock prices and market trends?

A.

I am aware that there are various interpretations regarding the factors contributing to the current rise in stock prices.
However, I, as the Minister of Finance, should refrain from commenting on the daily movements of stock prices. The daily fluctuations in stock prices are determined in the market by various factors, such as economic conditions and corporate activities.
In any case, I will closely monitor market trends.