December 2, 2022

Japan ready to support the yen again, promises the Minister of Finance

Japan’s finance minister has signaled that his government is ready to intervene again in the foreign exchange market if the yen continues to be under pressure.

Finance Minister Shunichi Suzuki pledged after Tokyo’s intervention in the foreign exchange market last week to support the yen for the first time in 24 years.

This came after the Japanese currency broke through a 24-year low past 145 yen to the dollar. The dollar last traded around 144.64 yen.

Also on AF: Asian markets mixed on dollar rise, pound slump

“Currencies must be determined by the markets and it is important that they are stable. Sudden, one-sided moves are not desirable,” Suzuki told reporters on the sidelines of the Asian Development Bank annual meeting in Manila.

The currency issue was not on the agenda of the AfDB meeting, he added.

“This time, speculative movements in the market have changed the way [currency moves] should be, so it was important to rectify these movements,” Suzuki said, adding that large currency swings would cause problems for businesses and households.

“We also remain fully vigilant against currency movements from now on and will take necessary action if necessary.”

Earlier on Thursday, Suzuki had a two-way talk with Sri Lankan President Ranil Wickremesinghe, who flew in from Tokyo after attending the state funeral of former Prime Minister Shinzo Abe.

Suzuki urged the president to make reform based on a staff-level agreement with the International Monetary Fund (IMF) and provide sufficient information about the debt.

“All creditors, including China and India, must participate in resolving debt issues. If such an environment is prepared, Japan will be ready to firmly play its part,” he said.

  • Reuters with additional editing by Sean O’Meara

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Sean O’Meara

Sean O’Meara is an editor at Asia Financial. He has been a newspaper man for over 30 years, working for local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. Passionate about football, cricket and rugby, he is particularly interested in the financing of sport.