Over the years, to enable the firms to manage their foreign exchange risk flexibly and efficiently, several relaxations have been introduced, such as, carrying out derivative transactions on the basis of past performance rather than on the basis of individual underlying contracts, cancelling derivative contracts even as the underlying exposure exists (and getting the benefit or bearing the loss thereof) with scope to rebook the contract against the same exposure, etc.
In my remarks, after touching on the latest action taken by the Bank of Japan to expand quantitative and qualitative monetary easing, dubbed the QQE, I would like to share my views on the potential impact of large-scale monetary accommodation on the functioning of financial markets, with a special focus on Japan. Monetary policy in major economies Let me begin with our monetary policy.