BOJ's Latent Profits on ETFs Total 12-13 T. Yen: Kuroda

Tokyo, Jan. 27 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda said Wednesday that latent profits on the central bank's holdings of exchange-traded funds are estimated at 12 trillion to 13 trillion yen.

The BOJ would not incur latent losses on the ETFs unless the benchmark 225-issue Nikkei stock average slides below 21,000 or so, Kuroda told the Budget Committee of the House of Councillors, the upper chamber of parliament.

Critics say that the bank's ETF purchases distort the formation of stock prices.

But Kuroda said the ETF purchases "have had a positive impact on market prices."

"I don't think that (the ETF buying) is distorting the Japanese stock market," he added. "At this moment, we have no plans to end our ETF purchasing."

[Copyright The Jiji Press, Ltd.]