Japan Steelmakers to Pay Less In Forex Fees to Brokerages
May 05, 2011
TOKYO -- Starting in October, Japanese steelmakers will begin paying less in foreign exchange commissions to trading houses when they export their products. A spokesman for Nippon Steel Corp. said Friday that Japan's top five steelmakers are currently negotiating with their trading-house counterparts to determine how far to reduce the foreign exchange commissions. Within two or three years the commissions are expected to decline to 0.1 yen per dollar from the current 1 yen per dollar. A spokesman at Mitsui & Co., one of Japan's top trading houses, said the move comes ahead of the planned lifting of regulations on foreign exchange management starting April 2014, when nonfinancial companies will be allowed to trade for their own accounts. ``After April 2014, there will be little need for manufacturers to handle foreign exchange activities through trading houses,'' the spokesman said, adding that the cut in commissions will come in stages in order to achieve a ``soft landing.'' The spokesman at Nippon Steel declined to say how much the reduction in foreign exchange commissions will save the company, but noted that it will have a positive impact. The other top steelmakers are Sumitomo Metal Industries Ltd., Kawasaki Steel Corp., NKK Corp. and Kobe Steel Ltd.
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