The US and Japan finance ministers reaffirmed their G7 commitments on currency policy, stressing exchange rates should remain market-driven. They pledged to avoid manipulation, limit intervention to disorderly markets, and disclose FX operations monthly.
Japan–US finance ministers’ joint statement highlights
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The US Treasury and Japan’s Ministry of Finance reaffirmed their partnership and agreed to continue close consultations on macroeconomic and foreign exchange matters.
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Both sides reiterated that exchange rates should be market-determined, warning that excess volatility and disorderly movements can undermine economic and financial stability.
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They reconfirmed commitments under IMF rules to avoid manipulating FX rates or the international monetary system for unfair advantage.
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They restated the G7 pledge that fiscal and monetary policy should serve domestic objectives using domestic tools, not targeting exchange rates.
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Agreed that macroprudential or capital flow measures will not be used to target exchange rates.
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Confirmed that government investment vehicles such as pension funds invest abroad for risk-adjusted returns and diversification, not to influence exchange rates.
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Concurred that FX intervention should only be considered to address excessive volatility or disorderly market conditions.
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Committed to publicly disclose any FX intervention operations on at least a monthly basis.
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Stressed the importance of transparent exchange-rate policies and practices.
This article was written by Eamonn Sheridan at investinglive.com.