Japan’s new ‘top currency diplomat’ Atsushi Mimura said “always watching” yen carry trade

Atsushi Mimura is Japan’s Vice Minister of Finance for International Affairs, also known as the “top currency diplomat.”

The Japanese Ministry of Finance is the authority in Japan to order intervention in the yen. Mimura took over the relevant department from Kanda, so he would be the one to direct the Bank of Japan’s intervention, if that happens.

Mimura spoke to NHK (Japan’s massive public broadcaster):

• “The authorities are always monitoring the markets.”
• “The yen trades that have built up in the past are likely to have been mostly unwound… but if such moves increase again, it could lead to increased market volatility. We are always monitoring the markets to make sure that doesn’t happen.”
• Authorities are prepared to act if currency movements become too volatile and deviate from fundamentals in a way that causes problems for businesses and households.