Govt nominates new BoJ head as opposition eyes veto

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TOKYO, Mar 18 (Reuters): Japan's government, with its central bank governor just a day away from retirement, put forward a second former finance ministry official to replace him, but opposition lawmakers looked set to wield their veto again.
Koji Tanami, the head of a state-funded lending agency, the Japan Bank for International Cooperation, was nominated to head the Bank of Japan (BoJ), surprising economists who had not seen him as a potential replacement for retiring governor Toshihiko Fukui.
Tanami, 68, told parliament he saw growing risks for the global economy, backing the view of some economists that he may be relatively dovish in the role.
Politicians have been squabbling over who will replace Fukui despite pledges by Prime Minister Yasuo Fukuda to avoid a BoJ leadership vacuum as major central banks work together to combat a global credit crisis and bring calm to turbulent markets.
Tanami once held the same rank at the finance ministry as Toshiro Muto, the current deputy BoJ governor who was blocked last week because opposition parties that control parliament's upper house say he is too close to the government.
Kenji Yamaoka, a senior lawmaker in the main opposition Democratic Party, said there was almost no chance Tanami would win upper house approval.