Yen promoted as common currency<\/p>\n
TOKYO (Nikkei): The Ministry of International Trade and
\nIndustry and utility firms are pushing to make the yen the common
\ncurrency in settling accounts for imported natural resources from
\nother Asian nations, the Nihon Keizai Shimbun reported in its
\nSaturday edition, citing sources.<\/p>\n
The move would provide Asian recipients of Japanese aid loans
\nwith less foreign exchange risk, allowing them to receive yen on
\nexporting natural resources and use the currency when repaying
\nloans to Japan.<\/p>\n
Malaysia recently agreed to consider a Japanese proposal to
\nbegin paying yen for liquefied natural gas (LNG) exports in a
\nyear or two. In August, MITI, Tokyo Electric Power Co. and Tokyo
\nGas Co. proposed yen settlements for a Malaysian project,
\nproviding 7.4 million tons of LNG worth 143 billion yen annually,
\n15 percent of Japan's total LNG imports.<\/p>\n
Under the proposal, the LNG contract price will be in dollar
\nterms, as commonly practiced, and converted to yen according to
\nthe foreign exchange rate at the time of payment.<\/p>\n
Japan is offering a similar proposal to Indonesia, targeting
\n3.5 million tons of LNG imported annually by a venture involving
\nTEPCO and Tohoku Electric Power Co.<\/p>\n
China is also being asked to accept part of payments for
\nimported coal in yen.<\/p>",
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