US Treasury Secretary Janet Yellen met this Tuesday (12) with Japanese Finance Minister Shunichi Suzuki, at which time both agreed to continue to consult closely with currency markets and to “cooperate as appropriate in foreign exchange matters”, taking into account the agreements envisaged by the G7 and the G20.
“The economic consequences of the invasion of Russia have heightened exchange rate volatility, which could have adverse implications for economic and financial stability,” reads a statement issued by the Treasury Department.
Taking into account the Ukraine war and its repercussions, the statement points out: “We will provide well-targeted support and build a more resilient and stronger supply chain in close collaboration with like-minded countries and international organizations.”
Representatives carefully addressed global debt issues. “We emphasize the critical role of creditor coordination to ensure fair burden-sharing among all creditors in debt handling for vulnerable middle-income countries, notably Sri Lanka,” the document reads.
On climate change, the duo reaffirmed their commitment to achieving zero net carbon emissions across the economy by 2050.
Regarding global taxation, the representatives reaffirmed their support for the current proposal that exists within the scope of the Organization for Economic Cooperation and Development (OECD).
The meeting took place in Tokyo as a bilateral meeting ahead of the financial G-20, which takes place this week in Indonesia.
foreign exchange intervention
Janet Yellen has shown a reluctance to intervene to support the yen after the recent fall in the Japanese currency. Yellen, who spoke in Tokyo on Tuesday after meeting with Minister Shunichi Suzuki, said the US is in favor of exchange rates being determined by the market.
She added that interventions by governments are justifiable “only in rare and exceptional circumstances”.
Yellen said he discussed at the meeting with Suzuki about how the yen had “devalued substantially”, but the two sides did not talk about policy.
According to the Treasury secretary, the US wants to communicate closely with Japan and other partners on exchange rate developments. Source: Dow Jones Newswires.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
