The Yen's Defender
the yen's rapid depreciation against the US dollar. As the yen approached the 150-yen mark in February, Kanda, then vice finance minister for international affairs, knew he had to act.
Drawing on his extensive experience and deep understanding of the financial markets, Kanda authorized a series of interventions in the foreign exchange market. On April 29, the government spent 5.92 trillion yen ($41 billion) to buy yen and sell dollars, pushing the exchange rate back to around 154 yen. A further 3.87 trillion yen was spent on May 1 to further prop up the yen.
Kanda's actions were motivated by a desire to protect the Japanese economy from the negative impacts of volatile exchange rates. He was particularly concerned about the potential for a repeat of the 1992 sterling crisis, where massive speculation led to a sharp devaluation of the British pound.
Kanda's interventions were met with mixed reactions. Some praised his decisiveness and effectiveness in curbing speculative activities, while others questioned the wisdom of intervening in the market. Nevertheless, the yen has stabilized in recent weeks, trading between 140 and 150 yen against the dollar.
Kanda's success can be attributed to his deep understanding of the financial markets, his extensive network of contacts, and his unwavering commitment to protecting the Japanese economy. His actions have earned him the respect of his colleagues and the nickname "Mr. Yen of the Reiwa Era.