Shun Michimura, Japan’s Vice Minister for International Affairs at the Ministry of Finance, on Monday denied a report by Yomiuri Shimbun. The report claimed that U.S. Treasury Secretary Scott Besant expressed in a bilateral meeting with Japan’s Finance Minister Katsunobu Kato that a weak dollar and strong yen are desirable. Michimura clarified that the meeting did not address issues of foreign exchange targets or exchange rate management frameworks.
Last Thursday, Katsunobu Kato and Besant held their first face-to-face meeting during the International Monetary Fund (IMF) and World Bank meetings. Afterward, Kato explicitly stated at the press briefing that the discussion did not cover exchange rate level targets or how to manage exchange rate frameworks, emphasizing that the U.S. made no specific requests, particularly concerning correcting the depreciation of the yen.
Michimura further reiterated that the talks did not involve any discussion on exchange rate targets. The governments of Japan and the U.S. agreed to continue close consultations to ensure ongoing cooperation in economic and international affairs. This statement effectively quelled speculations about potential changes in the Japan-U.S. exchange rate policy, highlighting the consistent stance of the two governments on exchange rate policies.
Despite significant fluctuations in the foreign exchange market in recent years, the governments of Japan and the U.S. have continually emphasized economic cooperation and stable development as core goals, avoiding excessive intervention in the market price formation mechanism.
