As seen from the many questions we are asked and news reports, market operations by the Bank of Japan are recently the focus of much attention from the public including market participants, analysts, and the press. This paper reflects my personal effort to assist these people and many others to gain a deeper understanding of the market operations carried out by the Bank. It includes an explanation of the role of the Bank's market operations in implementing monetary policy and the current operational framework. Specifically, Chapter II explains the role of market operations at present, and Chapter III, their operational framework. Chapter IV attempts to answer questions on market operations we have been asked since the introduction of the zero interest rate policy. Chapter V then introduces the details of the changes announced on February 14, 2000, regarding market operations data. Finally, Chapter VI discusses issues for the future.
