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Japan close to ending deadlock over BOJ governor

Mon Apr 7, 2008 9:55pm EDT
 
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(For more on the BOJ succession, click [ID:nT55777])

By Yoko Nishikawa

TOKYO, April 8 (Reuters) - Japan neared an end on Tuesday to a stalemate over who should head the country's central bank, with analysts expecting a smooth ride through parliament for the government's third pick for governor, Masaaki Shirakawa.

Shirakawa, a deputy governor currently acting head of the Bank of Japan, will face hearings in parliament from 11 a.m. (0200 GMT).

Later in the day opposition parties, who control parliament's upper house and can veto his appointment, will give their verdict ahead of a vote on Wednesday.

Japan is desperate to resolve the leadership row, which has left the central bank without a permanent head for the first time in 80 years, in time for Shirakawa to fly to a G7 finance leaders meeting on Friday in Washington that will tackle fragile global markets amid fears of a U.S. recession.

Shirakawa is a suitable replacement for previous governor Toshihiko Fukui, who retired last month, Finance Minister Fukushiro Nukaga said.

"As acting governor, Mr. Shirakawa has effectively handled work as governor taking over from Mr. Fukui. He has deep knowledge and long experience of handling monetary policy," he told reporters after a cabinet meeting.

The main opposition Democratic Party and its smaller allies are likely to support Shirakawa because they approved his appointment as deputy governor last month.  Continued...

 

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