Written by Makiko Yamazaki
RIO DE JANEIRO (Reuters) – Japan sees the recent G20 joint statement’s affirmation of existing commitments against excessive exchange rate volatility as a major achievement, Japanese Finance Minister Shunichi Suzuki said on Friday.
“We believe there have been significant achievements at the G20, such as including firm commitments on foreign exchange in the joint statement,” Suzuki said at a news conference after a meeting of G20 finance ministers and central bank governors in Rio de Janeiro.
The commitments say that the major G20 economies recognize that excessive volatility or disorderly movements in exchange rates can have negative effects on economic and financial stability.
At the same press conference, Japan’s top currency diplomat Masato Kanda said Japan had pushed for the commitments to be included in the final statement because their absence “could send a misleading message to the market.”
Although a weaker yen boosts exports, it has become a concern for policymakers by pushing up import costs and hurting consumption.
The yen rose sharply this week, recovering from a 38-year low hit earlier this month, as market participants liquidated their long-term bets against the currency ahead of a Bank of Japan meeting next week.
Some politicians have recently called on the Bank of Japan to provide more clarity on its plan to raise interest rates, in part to prevent the yen from testing new lows against the dollar.
Suzuki said he met with US Treasury Secretary Janet Yellen on the sidelines of the G20 meetings on Friday.
Kanda, who briefed reporters on the bilateral meeting, said they discussed “a wide range of topics including Russia, taxes and markets.”
Asked if foreign exchange was included in the talks on markets, Kanda confirmed that it was on the agenda, but noted that it was just an extension of routine contacts between the two countries and did not mean there were any major issues that needed to be addressed.