Thu, 28 Feb 2013 10:06:00 GMT | By AFP

Tokyo nominates ADB head Kuroda as Bank of Japan chief

Asian Development Bank chief Haruhiko Kuroda has been nominated as the next governor of the Bank of Japan, a key post in Tokyo's bid to overhaul the economy


Tokyo nominates ADB head Kuroda as Bank of Japan chief (© Reuters)

Tokyo: Japan on Thursday nominated Asian Development Bank chief Haruhiko Kuroda as the next governor of the Bank of Japan, a key post in Tokyo's bid to overhaul the economy. Kuroda, 68, was named along with two deputies -- Kikuo Iwata, an economics professor at Tokyo's Gakushuin University, and Hiroshi Nakaso, the BoJ's executive director, the government said.

The nominations, which must be approved by parliament, sent the yen lower against the dollar and euro after two days of gains. They come as Prime Minister Shinzo Abe's administration has leaned on the central bank to further loosen its monetary policy and help realise a goal of stoking growth in Japan's deflation-plagued economy.

Such moves have led to criticism that Tokyo is intentionally pushing down the yen's value and risking a global currency war as rival nations race to gain a trade advantage. Shortly before the announcement, Chief Cabinet Secretary Yoshihide Suga told reporters that "the people we will present (to the parliament) today will play the role of helmsmen for the 'bold monetary policy' that the prime minister is pursuing".

His comments suggest the nominees are expected to fall in line with Tokyo's plans, after Abe sparred over policy with outgoing BoJ chief Masaaki Shirakawa who is stepping down on March 19, three weeks before the end of his term. Japan's premier, who swept to power in December elections, warned Shirakawa that he could change a law guaranteeing the bank's independence if it did not follow his policy of big spending and aggressive monetary easing.

Kuroda, a longtime critic of the central bank, is known as an advocate of loosening the monetary reins to overcome slow growth, putting him squarely in Abe's policy camp.

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