ID :
145419
Sun, 10/10/2010 - 09:06
Auther :
Shortlink :
https://www.oananews.org//node/145419
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Japan explains its currency intervention to G-7+
WASHINGTON, Oct. 9 Kyodo - Japan on Friday explained its position on currency intervention to other Group of Seven economies and faced no serious criticism over the action, Finance Minister Yoshihiko Noda said.
The G-7 finance ministers and central bank governors reconfirmed that excessive
volatility in the currency market is unfavorable to the global economy and
financial system while agreeing that they will cooperate in prodding emerging
economies with trade surpluses to shift to a more flexible currency policy,
Noda said.
''I explained our currency intervention,'' Noda told reporters after the G-7
held talks over dinner on the sidelines of the annual meetings of the
International Monetary Fund and World Bank.
''I said (Japan) cannot tolerate excessive currency volatility affecting the
stability of the Japanese economy'' at a time when the economy struggles under
deflation, he said.
Noda said he faced no specific reaction to his explanation at the meeting.
Following its yen-selling intervention last month, Japan drew some criticism
from European and U.S. lawmakers who said it would complicate their efforts to
encourage China to adopt a more flexible currency system.
He said it was sensible that the G-7 again agreed that ''excess volatility in
the currency market causes negative impact on economic and financial
stability.''
Japan keeps its basic position that it would take decisive steps when they
prove necessary, the minister said, suggesting the country could stage a
further intervention to stem the yen's sharp rise.
The Japanese currency rose to a fresh 15-year high of 81.72 yen to the U.S.
dollar on Friday in New York on prospects of further monetary easing by the
U.S. Federal Reserve, well above the level at which Tokyo decided to step into
the market on Sept. 15 in its first such move in over six years.
The yen has rebounded from the 85 yen level, marked right after the intervention.
The G-7 also concurred that they will cooperate in prodding emerging market
economies with trade surpluses to ''conduct reforms toward a more flexible''
currency policy, Noda said, admitting that those economies include China.
The G-7 groups Britain, Canada, France, Germany, Italy, Japan and the United
States.
Noda said the global economy has been treading its recovery path ''stably, but
at a slower pace.''
Bank of Japan Governor Masaaki Shirakawa, who also attended the meeting, echoed
the view, saying the pace of recovery is different in each country, but that
''it does not mean the main scenario (of stable recovery) has been changing.''
Shirakawa also told reporters that he had briefed G-7 members on the Japanese
central bank's latest monetary easing to sustain Japan's economic recovery.
The BOJ said Tuesday it returned to a de facto zero-interest-rate policy and
will study establishing a fund to boost liquidity in the economy and support
business activities by facilitating the funding of companies.
==Kyodo
The G-7 finance ministers and central bank governors reconfirmed that excessive
volatility in the currency market is unfavorable to the global economy and
financial system while agreeing that they will cooperate in prodding emerging
economies with trade surpluses to shift to a more flexible currency policy,
Noda said.
''I explained our currency intervention,'' Noda told reporters after the G-7
held talks over dinner on the sidelines of the annual meetings of the
International Monetary Fund and World Bank.
''I said (Japan) cannot tolerate excessive currency volatility affecting the
stability of the Japanese economy'' at a time when the economy struggles under
deflation, he said.
Noda said he faced no specific reaction to his explanation at the meeting.
Following its yen-selling intervention last month, Japan drew some criticism
from European and U.S. lawmakers who said it would complicate their efforts to
encourage China to adopt a more flexible currency system.
He said it was sensible that the G-7 again agreed that ''excess volatility in
the currency market causes negative impact on economic and financial
stability.''
Japan keeps its basic position that it would take decisive steps when they
prove necessary, the minister said, suggesting the country could stage a
further intervention to stem the yen's sharp rise.
The Japanese currency rose to a fresh 15-year high of 81.72 yen to the U.S.
dollar on Friday in New York on prospects of further monetary easing by the
U.S. Federal Reserve, well above the level at which Tokyo decided to step into
the market on Sept. 15 in its first such move in over six years.
The yen has rebounded from the 85 yen level, marked right after the intervention.
The G-7 also concurred that they will cooperate in prodding emerging market
economies with trade surpluses to ''conduct reforms toward a more flexible''
currency policy, Noda said, admitting that those economies include China.
The G-7 groups Britain, Canada, France, Germany, Italy, Japan and the United
States.
Noda said the global economy has been treading its recovery path ''stably, but
at a slower pace.''
Bank of Japan Governor Masaaki Shirakawa, who also attended the meeting, echoed
the view, saying the pace of recovery is different in each country, but that
''it does not mean the main scenario (of stable recovery) has been changing.''
Shirakawa also told reporters that he had briefed G-7 members on the Japanese
central bank's latest monetary easing to sustain Japan's economic recovery.
The BOJ said Tuesday it returned to a de facto zero-interest-rate policy and
will study establishing a fund to boost liquidity in the economy and support
business activities by facilitating the funding of companies.
==Kyodo
