The short-term effect of foreign exchangerate movements in correcting international trade imbalances
appears to be waning, and long-term efforts are required to cut
Japan's chronic dependence on external demand, the Bank of
Japan said in a monthly report.
    Japan's trade surplus in nominal terms is likely to remain
high in the near future, the central bank said.
    Fundamental adjustments will be needed as long as Japan
hopes to benefit from a better international allocation of
resources and maintain the free trade system, it added.
 REUTER
