Japan touts G20 reaffirmation of forex commitments as key achievement

RIO DE JANEIRO (Reuters) – Japan sees the reaffirmation in the latest G20 joint statement of existing commitments against excessive foreign exchange volatility as one of the major achievements, Finance Minister Shunichi Suzuki said on Friday.

“The inclusion of the reaffirmed commitments in the joint statement is among major achievements,” Suzuki said, speaking at a press conference after the Group of Twenty (G20) finance ministers and central bank governors meeting in Rio de Janeiro.

The commitments say G20 countries recognize that excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and financial stability.

In the same press conference, Japan’s top currency diplomat Masato Kanda said that Japan pushed for the inclusion of the commitments in the statement as their absence “could give a misleading message to the market.”

The yen has rallied sharply this week, rebounding from 38-year lows hit earlier this month, as market participants unwound their long-held bets against the currency ahead of a Bank of Japan meeting next week.