TOKYO: Japan’s central bank is making it easier for cash-strapped companies to get funding in response to the growing economic devastation from the coronavirus pandemic.
The Bank of Japan decided at a meeting Monday to ease monetary policy, including expanding the purchase of commercial papers and corporate bonds, which work to deliver cash to companies.
In a move that was widely expected, the central bank also decided to remove the ceiling on its purchases of government bonds. It already has been purchasing trillions of yen (tens of billions of dollars’) worth of government bonds to counter deflation.
Its latest steps are similar to what central banks around the world are doing to curtail the massive damage the outbreak is unleashing on company profits and business activity.
“Japan’s economy has been in an increasingly severe situation due to the impact of the spread of the coronavirus at home and abroad,” the Bank of Japan said in a statement.
Additional monetary easing may be needed, and the central bank was closely monitoring the situation, it said.
The bank issued a separate statement reiterating that the economy was in a serious state but was expected to improve once the impact from the pandemic declines. It also warned much remains unclear.
Japan has reported about 13,000 coronavirus cases so far, and fewer than 400 deaths. As is true elsewhere, the number of confirmed cases is thought to understate the actual number of those who may have been infected.
Restaurants, concerts and other events have closed, and tourism is practically at a standstill. Auto factories have suspended production and people are being asked to work from home and stay home.
Japan’s economy, the world’s third largest, is dependent on exports, centered around products like cars and electronics goods.
But it’s also driven by small and medium size businesses, which analysts say are at major risk from the social distancing restrictions aimed at curbing the spread of the coronavirus.
The economy contracted at a 7.1 percent annual rate during the October-December period and is thought to be already in a recession, though data for the full first quarter of this year have not yet been released.
Japan central bank eases monetary policy to counter coronavirus pandemic
https://arab.news/62nw9
Japan central bank eases monetary policy to counter coronavirus pandemic
- ‘Japan’s economy has been in an increasingly severe situation due to the impact of the spread of the coronavirus at home and abroad’
- Japan’s economy, the world’s third largest, is dependent on exports
Over 3k flights cancelled across the Middle East after attack on Iran by the US, Israel
RIYADH: US and Israeli strikes on Iran led to widespread airspace shutdowns in the Middle East, canceling and rerouting thousands of flights and paralyzing key international travel corridors.
Flight cancellations affected seven airports across the Middle East, including Dubai and Abu Dhabi in the UAE, Doha in Qatar, and Manama in Bahrain.
Emirates Airlines said in a statement: “Due to multiple regional airspace closures, Emirates has temporarily suspended all operations to and from Dubai, up until 1500 hrs UAE time on Monday, 2 March.”
A flydubai spokesperson said the situation is evolving, and the airline is closely monitoring developments while coordinating with authorities to adjust its flight schedule.
“Our teams are working diligently to implement comprehensive welfare for all affected customers. The safety of our passengers and crew remains our highest priority,” the spokesperson said.
He added: “We are currently experiencing a high volume of calls and appreciate our customers’ patience while our teams work to assist everyone as quickly as possible.”
Qatar Airways announced that the airport will remain closed until at least the morning of March 2.
“Qatar Airways flights to, and from, Doha have been temporarily suspended due to the closure of Qatari airspace,” the airline said.
It added: “Qatar Airways will resume operations once the Qatar Civil Aviation Authority announces the safe reopening of Qatari airspace.”
Saudia also said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.
The organization said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.
Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.
The carrier added that further information would be announced in a subsequent statement if available.
Air Arabia also said its flights were experiencing cancellations, delays, or rerouting as a result of the evolving situation and airspace closures.
Airlines cited airspace closures and safety concerns as the main reasons for flight disruptions, urging passengers to check official channels for updates as the situation develops.
Israeli airspace also remained closed on March 1st. Israeli airline El Al said it was preparing a recovery effort to bring home Israelis stranded abroad once the airspace reopened.
Travelers were either stranded or diverted to other airports on Feb. 28 after Israel, Qatar, Syria, and Iran as well as Iraq, Kuwait and Bahrain, closed their airspace.
After the UAE announced a temporary partial airspace closure, FlightRadar24 recorded no flights over the country.
The closures affected key hub airports in Dubai, Abu Dhabi, and Doha. Emirates, Qatar Airways, and Etihad, airlines that operate from these hubs, normally handle around 90,000 passengers daily, with even more traveling to other Middle Eastern destinations, according to aviation analytics firm Cirium.
Airports hit by attacks
Two airports in the UAE reported incidents as the government there condemned what it called a “blatant attack involving Iranian ballistic missiles” on Feb.28.
Dubai International Airport, the UAE’s largest and one of the world’s busiest, reported four injuries, while Abu Dhabi’s Zayed International Airport said a drone attack killed one person and injured seven others. Strikes were also reported at Kuwait International Airport.
Though Iran did not publicly claim responsibility, the scope of retaliatory strikes that Gulf nations attributed to Iran extended beyond the US bases that it previously said it would target.
Flight delays, cancellations are likely to continue
“For travelers, there’s no way to sugarcoat this,” said Henry Harteveldt, an airline industry analyst and president of Atmosphere Research Group.
“You should prepare for delays or cancellations for the next few days as these attacks evolve and hopefully end,” he added.
To avoid conflict zones, airlines are rerouting Middle East flights over Saudi Arabia, adding hours and fuel costs, which could push ticket prices higher if the tensions persist.
The extra flights will strain air traffic controllers in the Kingdom, who may need to slow traffic for safety. Meanwhile, countries that closed their airspace will lose out on overflight fees from passing airlines.
Mike McCormick, former head of air traffic control at the FAA and now a professor at Embry-Riddle Aeronautical University, said some countries may reopen parts of their airspace in the coming days once US and Israeli officials provide airlines with details on military flight zones and Iran’s missile capabilities.
“Those countries then will be able to go through and say, ok, we can reopen this portion of our space but we’ll keep this portion of our airspace closed,” McCormick said.
“So, I think what we’ll see in the next 24 to 36 hours is how the use of airspace evolves as the kinetic activity gets more well-defined and as the capability of Iran to actually shoot missiles and create additional risk is diminished due to the attacks,” he added.
But it is unclear how long the disruption to flight operations could last. For comparison, the Israeli and US attack on Iran in June 2025 lasted 12 days.
