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ECONOMY > Economic Policy

Finance minister says sinking yen is “bad” for Japan

  • April 16, 2022
  • , Nikkei, Sankei
  • JMH Summary

Saturday’s Nikkei reported that Finance Minister Suzuki told the press on Friday that the recent rapid depreciation of the yen against the U.S. dollar is “bad” because higher raw material prices have not been passed on to consumers and wages remain sluggish. The daily said it was unusual for the currency authorities to comment on the yen’s value vis-à-vis other currencies, noting that the GOJ is concerned that the weakening yen may exacerbate the rise in import prices triggered in part by the war in Ukraine. Market players are reportedly bracing for the possibility of the GOJ choosing to intervene in the foreign exchange market to shore up the Japanese currency for the first time in almost 24 years if the rate drops as low as 130 yen to the dollar.

 

Sankei ran a similar story, pointing out that as Suzuki is likely to hold talks with Treasury Secretary Yellen in Washington this week on the margins of the G20 financial ministerial meeting, the two officials may discuss possible coordination on the financial and monetary fronts.

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