Alex Bobrov
Japan is determined to contribute to the expansion of the IMF reserve by lending $60B in order to help the eurozone resolve its debt crisis. The Japanese authorities are expected to officially announce their decision during the forthcoming G20 summit, which will take place in Washington later this week. Mr. Azumi, Finance Minister of Japan, hopes that this step will urge other states to contribute to the IMF expansion as well.
According to him, the additional financing of the IMF will help to overcome the crisis not only in the eurozone, but in Japan and other Asian countries as well.
According to the estimations conducted by IMF experts, as of February 2012, the fund needed $600B in order to help all the countries affected by the eurozone crisis. However, Christine Lagarde assumes that the sum may turn out to be less substantial due to lower economic risks.
Nevertheless, some countries (including the US and Canada) do not want to participate in the IMF expansion program. Russia, Brazil and China are ready to help only in exchange for the expansion of their influence in the IMF. According to Reuters, the G20 members are planning to allocate $400-500B, eurozone members are said to allocate $200B, other EU members- $50B.
Forex.
According to , the Japanese Yen keep strengthening against the US Dollar. USDJPY is in the process of forming a major downswing – wave А(С)/С of wave level Daily. A break above the top of the MF sloping channel and pivot will complete the current bearish wave. A break below the 80.29 low will elongate the current wave. The closest major levels of support are 80.09, 79.80, 79.55, 79.14/13.
Alex Bobrov
