Author: Makiko Yamazaki

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

“We believe that significant results were achieved at the G20 summit, such as the inclusion of confirmed commitments on foreign exchange in the joint communique,” Suzuki said, speaking at a news conference after a meeting of finance ministers and central bank governors of the Group of Twenty (G20) in Rio de Janeiro.

The commitments state that major G20 economies recognise that excessive volatility or disorderly fluctuations in exchange rates can have adverse consequences for economic and financial stability.

At the same news conference, top Japanese currency diplomat Masato Kanda said Japan had pushed for the commitments to be included in the statement because their absence “could give a misleading message to the market.”

While a delicate yen boosts exports, it has also become a source of concern for policymakers as it raises import costs and negatively impacts consumption.

The yen has surged this week, recovering from a 38-year low reached earlier this month as market participants retreated from their long-term bets against the currency ahead of a meeting of the Bank of Japan (BOJ) next week.

Some politicians recently called on the Bank of Japan to provide more clarity on its interest rate hike plan, partly to prevent the yen from falling again against the dollar.

Suzuki said he met with U.S. Treasury Secretary Janet Yellen on Friday on the sidelines of the G20 meeting.

Kanda, who briefed reporters on the bilateral meeting, said the two sides discussed “a wide range of topics, including Russia, taxes and markets.”

Asked if the currency exchange issue was on the agenda during the market talks, Kanda confirmed it was on the agenda but stressed that it was simply an extension of routine communications between the two countries and did not mean there were any major issues to discuss.