My- the question I think a lot of people are asking, is that enough? Do these interventions really work, or are they just kinda short-term in nature typically?

So it's not the first time that, um, we've seen intervention in Japan this year.

Um, the Bank of Japan did intervene in April and in May.

I would actually argue, um, that considering what we've seen this year, we've seen a war, we've seen an energy shock, we've seen a tremendous amount of Fed volatility, dollar/yen has actually been relatively stable ar- around 160.

I do think the market will need the Bank of Japan to walk the hawkish talk that we had today.

They will need to accelerate the pace of rate hikes.

They are talking about inflation being north of 2% over their forecast horizon, so keeping rates at 1% is simply not enough.

Yeah

Would you be able to elaborate on that and some of the key themes that you think are worth highlighting?

Sure, Henry.

It's good to be on RateCheck.

So I do think Japan could be at the precipice of a very significant shift in industrial and fiscal policy.

And I always like to look back at history.

And I think what's happening now has the echoes of the Meiji Restoration, which took place in the mid-19th century.

So if we go all the way back to 1868, when pre-modern Japan was looking at the threat of foreign involvement.

So if the government are accessing private sector savings, Malika, does that have implications for the Japanese yen?

So can you just walk us through your thesis and tell us what this crisis specifically, why this crisis specifically could put the dollar's role at risk?

Sure, Eddie.

Great to be here.

And I think the Middle East is strategically very important to the dollar's role as the world's reserve currency.

And what I argue in my research is that the long-term legacy of this conflict could be the ways in which it challenges one of the core foundations of dollar dominance, which is the petrodollar.

So if we spend a minute on the basic logic of Being a reserve currency is about having the world save in your currency.

You know, it gives the US the exorbitant privilege of being able to borrow more cheaply than it otherwise could have.

scenario but malik i want to go back to you because it feels like all of this like the the few how how the straight reopens right then the sort of whether iran actually can institutionalize control over the street could also potentially have an impact on the dollar