Another reason for skepticism is that the domestic channel through which monetary policy works in Japan operates very importantly through the banking system. The continuing banking sector problems suggest that this channel remains weak, if not inoperative.
The Code is intended to apply to all aspects of the wholesale foreign exchange market. I am chairing this work, with Simon Potter of the Federal Reserve Bank of New York leading the work on developing the Code and Chris Salmon of the Bank of England leading the adherence work.