An important opposition party in Japan has said that it will not support the government's decision to nominate Toshiro Muto for the post of the head of the country's central bank, Bank of Japan (BOJ).

An adviser to Prime Minister Shinzo Abe has indicated Toshiro Muto, who is a former deputy governor, would be a good candidate for the top post at the BOJ. BOJ Governor Masaaki Shirakawa is set to retire after the his term in April this year. The ruling Liberal Democratic Party (LDP) of Prime Minister Shinzo Abe needs the support of the opposition parties to approve BOJ nominees in the upper house.

Yoshimi Watanabe, head of the opposition Your Party said that the party would block government's move to nominate him to the post because it believe that the appoint is a result on a backroom deal between the ministries, looking to place people closer to them at influential positions. Watanabe supports Abe's approach of aggressive reflationary monetary policy and might have influential impact on the process.

Meanwhile, Watanabe also said Asian Development Bank head Haruhiko Kuroda should remain at his position so that eh leadership of the ADB remains with the country.