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BOJ exempts short-term funds from negative interest

TOKYO -- The Bank of Japan decided Tuesday that it will not apply negative interest rates to money reserve funds, a vehicle brokerages use to park investors' cash, in order to protect retail investors and avoid chaos in the market.

     The balance of MRFs come to about 10 trillion yen ($88.4 billion). Had the amount been subject to the negative rate, it would have cost brokerages over 10 billion yen a year to make up the shortfall.

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