Atsushi Mimura, Japan’s new vice finance minister for international affairs, recently spoke to Reuters about Japan’s stance on the yen and its approach to handling exchange rate volatility. Mimura emphasized the importance of market-determined exchange rates while acknowledging the potential negative impacts of excessive volatility on economic and financial stability.
Mimura stated that Japan will continue to adhere to internationally agreed commitments regarding exchange rates, with interventions being a viable option when necessary to address disorderly movements in the market. He highlighted the role of interventions in maintaining stability and preventing adverse impacts on the economy. Mimura’s background in the ministry’s international bureau and expertise in financial regulation position him well to oversee Japan’s currency policy effectively.
Mimura hinted at a potential shift in the style of communication with markets, recognizing the importance of clear and effective communication. He emphasized the need to avoid creating unnecessary speculation or uncertainties in the market, suggesting that communication can be achieved through both speaking and not speaking. This approach aims to maintain transparency while preventing undue market reactions.
Mimura emphasized the importance of cooperation between the Ministry of Finance, the Bank of Japan, and the Financial Services Agency to align on macroeconomic policy. This coordinated approach ensures a unified strategy to address economic challenges and enhance Japan’s growth potential. Mimura highlighted the need to improve Japan’s economic competitiveness across various sectors, including traditional manufacturing and emerging industries like tourism and pop culture.
With a significant portion of his government career dedicated to financial regulation, Mimura brings valuable expertise and international connections to his role. His experience at the Bank for International Settlements during the global financial crisis underscores his understanding of financial stability and regulatory reform. Mimura’s background positions him to navigate complex financial challenges and address regulatory issues effectively.
Overall, Atsushi Mimura’s leadership in Japan’s currency policy reflects a balanced approach that prioritizes stability, communication, and collaboration with financial authorities. His expertise and experience in financial regulation provide a strong foundation for addressing economic challenges and promoting growth in Japan’s economy.