Bloomberg News

Azumi Says Japan’s Currency Concerns Reflected in G-20 Statement

October 15, 2011

(See {EXT4 <GO>} for more on the debt crisis and click {GMEET <GO>} for the G-20 meeting.)

Oct. 15 (Bloomberg) -- Japanese Finance Minister Jun Azumi said Japan’s concerns about excessive currency movements were reflected in the Group of 20’s statement after a meeting of finance chiefs in Paris.

The “main pillars” of Japan’s views were included in the G-20 communique, Azumi told reporters today. A Japanese official, speaking on condition of anonymity in line with government policy, said Japan convinced G-20 nations to say in the statement that “excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.”

Japan has intervened three times since September last year in an attempt to weaken the yen as its continued strength threatens to hurt the nation’s export-dependent economy. Bank of Japan Governor Masaaki Shirakawa said yesterday global uncertainties are pressuring the yen and urged European nations to tackle their debt problems swiftly.

The yen closed at 77.22 against the dollar in New York trading this week after rising to a post-war record of 75.95 on Aug. 19.

Azumi said Japan, whose public debt is projected by the Organization for Economic Cooperation and Development to reach 219 percent of gross domestic product next year, even before accounting for borrowing to fund reconstruction after the March earthquake, must not allow its fiscal situation to deteriorate further.

A global failure to maintain confidence in government bonds would create “massive problems,” Azumi said.

--Editors: Matthew Brockett, Simone Meier

To contact the reporter on this story: Toru Fujioka in Paris at tfujioka1@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net


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