Mohamed El-Erian, Chief Economic Advisor at Allianz, has called for a cautious unwinding of Japan’s excessive ‘carry trades’ following recent dovish signals from the Bank of Japan. El-Erian highlighted the risks associated with the pro-risk approach adopted by the BoJ. What Happened: El-Erian took to social media platform X to express his apprehensions about the BoJ’s pro-risk approach. He highlighted the potential conflict between this approach and Japan’s domestic economic needs. El-Erian recommended “Rather than encourage markets to place new “carry trades,” as it is this morning, it should…
