Shirakawa tipped to get nomination as BOJ chief

After informally sounding out the Democratic Party of Japan, the government is poised to put forward Bank of Japan Deputy Gov. Masaaki Shirakawa to be the new leader of the central bank, sources said Friday.

Masaaki Shirakawa KYODO PHOTO

Meanwhile, executives of the Democratic Party of Japan, including President Ichiro Ozawa, met Friday evening and most agreed to the proposal, the sources said.

If convinced that the DPJ-led opposition camp will approve its proposal, the government will formally nominate Shirakawa on Monday.

If things go smoothly, both chambers of the Diet will, as required, approve the choice at plenary sessions Wednesday, the sources said.

"We, the DPJ, approved Shirakawa as deputy governor so I think it would be difficult from a logical point of view for us not to approve him as governor," DPJ Secretary General Yukio Hatoyama told reporters Friday evening.

The governor post has been vacant since Toshihiko Fukui completed his five-year term on March 19 following two rejections by the opposition-controlled House of Councilors of nominees submitted by the government.

Shirakawa, currently one of the two deputy governors, has been serving as acting BOJ chief since Fukui's departure.

Meanwhile, Hiroshi Watanabe, a former vice finance minister for international affairs, is emerging as a candidate to succeed Shirakawa as deputy governor, the sources said.

Watanabe is currently a special adviser to the Japan Center for International Finance.

Prime Minister Yasuo Fukuda indicated Thursday the government will propose a new nominee so Japan can send the new BOJ chief to the April 11 Group of Seven financial leaders' meeting in Washington.

The G7 gathering brings together finance ministers and central bank governors from Britain, Canada, France, Germany, Italy, Japan and the United States.

The Upper House earlier voted down nominees Toshiro Muto and Koji Tanami, with the DPJ and other opposition parties insisting their backgrounds as former vice finance ministers would limit the BOJ's independence from the government when steering monetary policy.