On January 23, Bank of Japan governor Haruhiko Kuroda advised China to impose capital controls to defend CNY – about a week a later he made China’s job a lot harder by setting Japan’s interest rates in negative territory for the first time ever. The BoJ’s shock move has accentuated a number of dynamics in the forex markets, some of which could have unintended consequences. The BoJ, is to cut rates from 0.1 to -0.1 on commercial bank balances at the central bank above certain minimum thresholds, which apes policies in Denmark, Sweden, Switzerland and the Eurozone. It’s supposed to make holding cash less attractive and ... (full story)