Mr. Nakaso, who worked with his counterparts in other countries on contingency plans like currency swap agreements during the global financial crisis, has since maintained that the yen is overvalued.
It also aggravated concerns in the currency markets that Germany was preparing contingency plans for its banks in the event of a Greek default, Eric Viloria, senior market strategist for Forex.com, said.
The government had made contingency plans for a temporary alternative currency, in the form of electronic I.O.U.s.
The Greek government will also be making contingency plans for exit from the single currency.
"We're looking into an abyss, but we should not confuse contingency plans with reality," said Marc Chandler, the top currency strategist for Brown Brothers Harriman.
Yet it is he who may now face criminal charges, including high treason, for allegedly hacking into tax accounts to arrange contingency plans for the introduction of a new currency.
Details of the contingency plans followed yet more turmoil in the single currency after Spain's fourth-largest bank, Bankia, asked the government for a bailout worth 19bns euros ($24bn £15bnn).
Carney has not disclosed details of contingency planning by the Bank but on Tuesday tackled the currency question.
Businesses are just too nervous about the future and are desperately (one assumes) putting together contingency plans for the collapse of the euro and resultant currency depreciation.
BRUSSELS, May 23 (Reuters) - Each euro zone country will have to prepare a contingency plan for the eventuality of Greece leaving the single currency, euro zone sources said on Wednesday.
