Japan’s Suzuki and Yellen Confirm Existing Forex Agreements
2022.04.22 05:11
© Bloomberg. Shunichi Suzuki, Japan’s finance minister, arrives to the International Monetary Fund (IMF) headquarters during the spring meetings of the IMF and World Bank Group in Washington, D.C., U.S., on Wednesday, April 20, 2022. The IMF today called on nations to provide grants and donations to fill a $5 billion monthly financing need for Ukraine after Russia’s invasion.
(Bloomberg) — Japan’s Finance Minister Shunichi Suzuki said he discussed recent sudden moves in the yen with U.S. Treasury Secretary Janet Yellen, and the two agreed to uphold existing foreign exchange rate agreements.
“We discussed existing Group of Seven thinking on foreign exchange,” said Suzuki, speaking to reporters late Thursday in Washington D.C. “We’ll respond based on that agreement.”
Standing G-7 agreements say that foreign exchange rates should be decided by the market, although excessive moves can have a negative impact. Suzuki said he showed Yellen how recent moves in the yen have been very sudden, but he declined to comment on the possibility of intervention.
The talks come with the yen close to a two-decade low set on Wednesday. The weaker yen is amplifying the impact of soaring commodity prices that are squeezing corporate profits and household budgets.
Suzuki indicated his continued concern over moves in the yen.
“The government has historically said that sudden moves aren’t desirable,” said Suzuki. “But we’re now seeing sudden moves, and we have to watch the situation carefully with a sense of urgency.”
The yen softened a touch against the dollar after the remarks at around 128.50 against the dollar.
©2022 Bloomberg L.P.
