ID :
209090
Fri, 09/23/2011 - 17:23
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Shortlink :
https://oananews.org//node/209090
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Japan raises strong yen concern at G-20, issue not discussed further
WASHINGTON, Sept. 23 Kyodo - Japanese Finance Minister Jun Azumi said Thursday he raised concerns about the negative impact of the yen's recent appreciation on the nation's economic recovery at the financial meeting of the Group of 20 developed and emerging economies, but participants did not discuss the issue at length.
''I explained that the Japanese economy has been on a recovery track but the yen's appreciation since August has dampened the trend,'' Azumi told a news conference after the G-20 meeting in Washington.
He implied Japan's position was shared among the G-20 as the communique issued after the dinner talks said, ''We reiterate that excessive volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.''
Bank of Japan Governor Masaaki Shirakawa also raised the issue at the G-20 gathering, telling the participants that investors' preference for safe-haven assets amid growing uncertainty about the global economy is driving the yen higher.
But Azumi admitted Japan's claim did not spark any discussions and said, ''In the conference, we just explained our position one country by one country at the request of the chairman and no question-and-answer session was supposed to follow.''
The Japanese finance minister and BOJ chief had earlier emphasized Japan's economic predicament in relation to the yen's strength at the Group of Seven financial meeting held in the French port city of Marseille about two weeks ago. As with Thursday's meeting, however, the issue was not discussed at length.
Asked if Japan plans to buy more EFSF bonds, which are debts issued through the bailout fund European Financial Stability Facility, Azumi indicated the government may consider such an option, if necessary.
Azumi also said he told the G-20 financial chiefs that Tokyo plans to finance massive spending totaling 19 trillion yen to rebuild the country after the March earthquake and tsunami by tax reform centering on the income and corporate taxes.
Japan aims to raise the consumption tax rate from the current 5 percent to 10 percent by the mid-2010s to promote fiscal consolidation.
Asked about Japan's contribution to the world economy, Shirakawa said, ''Although the relative size of the economy declined to No. 3 in the world, its size is still very large and financial presence is big.''
The fact that Japan's financial market remains stable is contributing to the world economy, the BOJ chief said.
''I explained that the Japanese economy has been on a recovery track but the yen's appreciation since August has dampened the trend,'' Azumi told a news conference after the G-20 meeting in Washington.
He implied Japan's position was shared among the G-20 as the communique issued after the dinner talks said, ''We reiterate that excessive volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.''
Bank of Japan Governor Masaaki Shirakawa also raised the issue at the G-20 gathering, telling the participants that investors' preference for safe-haven assets amid growing uncertainty about the global economy is driving the yen higher.
But Azumi admitted Japan's claim did not spark any discussions and said, ''In the conference, we just explained our position one country by one country at the request of the chairman and no question-and-answer session was supposed to follow.''
The Japanese finance minister and BOJ chief had earlier emphasized Japan's economic predicament in relation to the yen's strength at the Group of Seven financial meeting held in the French port city of Marseille about two weeks ago. As with Thursday's meeting, however, the issue was not discussed at length.
Asked if Japan plans to buy more EFSF bonds, which are debts issued through the bailout fund European Financial Stability Facility, Azumi indicated the government may consider such an option, if necessary.
Azumi also said he told the G-20 financial chiefs that Tokyo plans to finance massive spending totaling 19 trillion yen to rebuild the country after the March earthquake and tsunami by tax reform centering on the income and corporate taxes.
Japan aims to raise the consumption tax rate from the current 5 percent to 10 percent by the mid-2010s to promote fiscal consolidation.
Asked about Japan's contribution to the world economy, Shirakawa said, ''Although the relative size of the economy declined to No. 3 in the world, its size is still very large and financial presence is big.''
The fact that Japan's financial market remains stable is contributing to the world economy, the BOJ chief said.
