Japan has to repair “misunderstanding” it’s manipulating Jena, says former chief of Kuroda
Leika Kihara
Tokyo (Reuters) – Japan has to repair “any misunderstanding” held by US President Donald Trump that his central bank has deliberately weakened Jen monetary policy, said former Japan Governor Haruhiko Kuroda.
Trump said on Monday that he had told Japan and China that they could not continue to reduce the value of his currencies, because it would be unfair to the United States.
Asked about Trump’s comment on Friday night, Kuroda told the Japanese television interlocutor that there were limitations to what Japan could do to support Jen if the dollar increased on the prospect of larger US inflation than Trump’s planned tariffs.
“In fact, the Japanese government is making huge efforts to prevent the weakening of yen,” such as intervention on the exchange market to support its currency, Kuroda said.
After a long period of Ultra-Jasna policy, battle began to increase interest rates, while the Government was rare intervention on the currency market in 2022 and last year to step up Jen, which hit the 38-year-old Nisk to $ 162 in July. The dollar ended this week around 148 yen.
“Fair does not deliberately lead Jen lower with monetary policy. If a misunderstanding occurs at that point, it should be resolved,” Kuroda said.
Although he spoke in several seminars, it was the first time Kuroda appeared on television since she withdrew as a Head battle.
Fight to keep normalizing the footsteps
The Central Bank is unwrapped with radical mitigation of monetary mitigation that Kuroda designed during its 2013-2023 term to break Japan without decades of deflation and growth of growth. Under it, the battle deployed a huge program for the purchase of property in 2013, then negative interest rates and control of bond yields in 2016.
Yen Falls caused by the initial stimulus blow, and a further decline stimulated by the appearances for long -lasting low rates, criticized Washington’s criticism, including the first Trump administration, that Tokyo tried to maintain Jen weak to give Japanese exports a competitive advantage.
Under the current Governor Kazu Ueda, Boj went to radical stimuli measures in March last year and increased the short -term rates at 0.5% in January, according to Japan at the height of the sustainable achievement of his 2% inflation goal.
Kuroda said the battle is taking the right step gradually increasing rates because maintaining ultra-loose policy could increase inflation for too long.
“Fighting already normalizes monetary policy and will constantly continue on this front, such as gradual hiking towards the levels considered neutral,” Kuroda said.
