stress and the exchange rate. in times of stress, the dollar tends to appreciate as investors seek the safety of u. s. markets. the same is even more true for japan, with the see jose manuel campa and linda s. goldberg ( 2005 ), “ exchange rate pass - through into import prices, ” review of economics and statistics, vol. 87 ( november ), pp. 679 – 90 ; and christopher gust, sylvain leduc, and robert vigfusson ( 2010 ), “ trade integration, competition, and the decline in exchange - rate pass - through, ” journal of monetary economics, vol. 57 ( april ), pp. 309 – 24. - 7yen often recording even stronger appreciation than the dollar in times of increased risk aversion. other channels operate differently because of structural differences between the united states and japan. one difference is in the currency used to invoice trade. in the united states, almost all trade, both imports and exports, is invoiced in dollars. one aspect of this, as mentioned earlier, is that changes in the value of the dollar tend to have a relatively limited effect on u. s. import prices and import demand. despite the importance of the yen in global financial markets, a significant portion of japan ’ s trade is also invoiced in dollars rather than yen, including not only japan ’ s exports to the united states, but also its exports to other countries in asia. 6 some scholars have proposed that the importance of the dollar in japan ’ s trade lessens the responsiveness of japan ’ s exports to movements in the yen while making exports more sensitive to changes in the value of the dollar and, therefore, u. s. monetary conditions. 7 regarding inflation, through the considerable efforts of the bank of japan ’ s quantitative and qualitative monetary easing program launched in early 2013, japan has emerged from almost 15 years of modest deflation and is now operating with a positive inflation rate. while the inflation remains below the bank of japan ’ s long - run objective of 2 percent, it represents a notable accomplishment given the difficulty of changing public inflation expectations after a long period of modest deflation in consumer prices. see takatoshi ito, satoshi koibuchi, kiyotaka sato, and junko shimizu ( 2019 ), “ growing use of local currencies in japanese trade with asian countries : a new puzzle of invoicing currency choice, ”

benjamin e diokno : opening message for the financial sector forum - carnegie mellon university on exponential technologies and the financial sector opening message by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), for the financial sector forum - carnegie mellon university on exponential technologies and the financial sector, online, 2 march 2022. * * * professor emil bolongaita, head of carnegie mellon university – australia, professor ariel zetlinjones, associate professor of economics, tepper school of business and visiting scholar of the federal reserve bank of philadelphia, professor murli viswanathan associate professor of information technology, professor riaz esmailzadeh professor of management of information technology, securities and exchange commission chairperson emilio aquino, insurance commission commissioner atty. dennis b. funa, philippine deposit insurance corporation president roberto tan, bangko sentral ng pilipinas deputy governor chuchi fonacier, colleagues from the financial sector forum, ladies and gentlemen, good morning! the pursuit of learning is an unending journey. with the rapid changes in the financial landscape, it is a must for every regulator to continue to learn and re - learn matters vital in carrying out our mandates. from the financial sector forum supervisory technology and regulatory technology summit held last october 2021, one thing is certain : the need for transformation that will bring forth a new breed of supervisors. it important that supervisors are not only technology literate, but are also competent and knowledgeable in various digital technologies, such as ai, blockchain, machine learning, and other emerging technologies. as such, the fsf, through its information exchange committee will roll out additional training programs designed to give an in - depth understanding of these technologies. at this point, i ’ d like to thank our partners from carnegie mellon university australia, headed by professor emil bolongaita, for sharing their knowledge with us all. through this collaboration, we hope to develop financial supervisors ready to take on the lead and be in the forefront of the industry ’ s digital transformation. in closing, i ’ d like to welcome everyone to this online conference. i hope you take this opportunity to widen your horizon and take in as much learning as you can to benefit your respective agencies and the philippine financial sector as a whole. thank you and good morning! 1 / 1 bis central bankers'speeches