Nippon Keidanren incurs 2 billion yen evaluation loss on investments.
The Japan Business Federation said Thursday it has incurred a 2 billion yen evaluation loss on its securities investments as of March 31 due to the recent rapid rise of the yen against other major currencies.
The nation's most influential business lobby said it will discipline three officials in its Secretariat in connection with the investments, cutting the salaries of the trio, including Director General Yoshio Nakamura, by up to 30 percent over a three-month period starting in April.
The loss has stemmed from the investments in euroyen bonds and mutual funds into which bonds denominated in foreign currencies are incorporated, according to the group, widely known as Nippon Keidanren.
The bonds and funds have been purchased from multiple brokerage houses since the summer of 2006.
The amount initially invested in these financial instruments stood at 4 billion yen. Their market values had halved by the end of March as a result of the sharp appreciation of the yen against other major currencies, it added.
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|Publication:||Japan Weekly Monitor|
|Date:||Apr 6, 2009|
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