Many central banks, including the Bank of Japan, have not set exchange rate levels as a monetary policy target, but rather conduct monetary policy to aim at a target level of 2 percent inflation so as to achieve price stability.
The fact that major advanced economies are all aiming at the 2 percent target level may be one of the factors that are stabilizing exchange rates. II. Monetary Policy The Bank of Japan will persistently continue with accommodative monetary policy until the 2 percent price stability target is achieved (Chart 12).