The dispute over replacing the Bank of Japan governor, whose seat was left vacant when Toshihiko Fukui's five-year term ended March 19, was finally settled April 9 when Deputy Gov. Masaaki Shirakawa was officially promoted to chief of the central bank.

The new BOJ governor was welcomed by leaders of other industrialized nations as he attended a Group of Seven meeting of central bankers and finance ministers in Washington on April 11 and during the subsequent dialogue with private-sector financial leaders. It was a great pleasure to see Gov. Shirakawa carry out his new duties smoothly there. However, I would like to make three comments on the selection of the new governor.

First of all, it is clear that the political process leading up to the selection damaged Japan's international credibility. Around the world, it was reported that Japanese politicians are unable to make timely decisions on important matters amid rapidly changing global circumstances.