Updated: 2008-03-19 13:28

TOKYO - Japan's opposition-controlled upper house of parliament on Wednesday voted down the government's nominee to be the next central bank chief, hours before the post becomes vacant, a lawmaker said.

Bank of Japan Governor nominee Koji Tanami listens to questions during a hearing at the upper house of Parliament in Tokyo Tuesday, March 18, 2008. [Agencies]

The upper house rejected Koji Tanami, a former finance ministry official who now heads Japan's main development lending agency, by a vote of 125 to 112.

"We hereby decide not to agree," upper house president Satsuki Eda announced.

Tanami was the second nominee rejected by the opposition. Current Bank of Japan governor Toshihiko Fukui's five-year term expires at midnight (1500 GMT).

Nominees for the central bank need the approval of both houses of parliament.