Katayama says G20 should monitor markets with urgency
The finance minister warned speculators that Japan was prepared to take action in the currency market again if necessary.
Finance Minister Satsuki Katayama urged Group of 20 (G20) policymakers to closely monitor financial markets due to recent currency pressures and global bond market volatility. At a press conference in Bangkok, Katayama reiterated Japan's commitment to managing its foreign exchange rates and warned speculators that Japan would take action in the currency market if necessary, following the yen's recent decline.
She also stated that there has been no change in the stance of the United States and Japan regarding their joint intervention to support the yen in July. The yen weakened against the dollar after U.S. inflation data showed accelerating inflation, briefly reaching a low against the dollar. Katayama mentioned that the G7 members agreed to conduct tabletop exercises to prepare for frontier AI-related incidents during their discussions in Bangkok.
She highlighted Japan's ability to make a credible case for fiscal sustainability and emphasized the need for governments to set fiscal sustainability targets and create budget space for growth-enhancing investments. Katayama was also appointed as chair of the Development Committee, a joint forum of the World Bank and International Monetary Fund, for a two-year term, starting next April.
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