The 210th Meeting of "Foreign Policy Briefing"
on "Failure of Financial and Capital Markets and Deterioration of World Economy" Held

JFIR monthly organizes a "Foreign Policy Briefing" meeting, former "Foreign Policy Breakfast" meeting renamed, to provide an occasion for members of JFIR to meet in an informal and confidential manner with senior officials of the Japanese Government and/or other experts and specialists in fields related to international relations. The 210th "Foreign Policy Briefing" meeting entitled "Failure of Financial and Capital Markets and Deterioration of World Economy" was held on 10 December 2008. Mr. OBA Tomomitsu, a former Vice Minister of Finance for International Affairs and President of The Japan Center for International Finance, presented his views as follows.

With regard to the key currency, the situation in the capital transaction is quite different from one in the merchandise trade. It is all agreed that the key currency is still U.S. dollar in the world. But it is interestingly pointed out that the key currency of the capital transaction, however, is becoming increasingly Euro, and there is a possibility that the increasing influence of Euro may not allow US dollar to keep its position as the financial deficit of the US is reaching the level of one trillion dollars per year. Japan may no longer be called a "trade surplus country" because its trade surplus has been falling from zero to minus this year.


The Japan Forum on International Relations (JFIR)