JAPAN MINISTRY ASKS TRUST BANKS TO CUT DLR SALES

  The Finance Ministry has asked trust banks
  to moderate their dollar selling, trust banking sources said.
      A Ministry official told Reuters earlier this week the
  Ministry had recently surveyed foreign exchange transactions by
  institutional investors, but he declined to say whether this
  was aimed at moderating the dollar sales.
      Dealers said institutional investors were reluctant to sell
  dollars aggressively today partly because of the Ministry
  monitoring.
      One senior trust bank source said that while sympathizing
  with the Ministry position, the trust banks had to conduct
  their foreign exchange operations according to the dictates of
  the market.
      A Bank of Japan official said the central bank approved of
  the survey as long it was not used too forcefully.
      But another official denied local press reports that the
  central bank itself had asked investors to moderate their
  dollar sales. "We are not legally authorized to do that," he
  said.
      A Bank of Japan official also said the central bank will
  renew its call on financial institutions to moderate excessive
  loans for the purpose of land and securities investment as such
  investments threaten to cause inflation.
      Bank of Japan Governor Satoshi Sumita had previously
  expressed concern about excessive investment in land and
  securities resulting partly from eased credit conditions.
  

