A 2006 phenomenon inside Japan and among domestic Japanese banks is the swap market. Many reasons exist for this.

The Bank of Japan (BOJ) restructured their operating target in 2006 from outstanding balance of accounts to present connection to Japanese Call rates (Baba). This led to a slow growth into interest rate swaps, but those swaps were initially employed primarily by overseas institutions (Baba).

Not mentioned is the Japanese Bank for International Cooperation, which through the Japanese Finance Corporation developed relationships outside Japan, financed imports and exports, invested in overseas enterprises, and developed relationships to ensure that oil, natural gas, and iron ore would continue to flow into Japan's manufacturing ...

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