Japan, US finance chiefs to discuss currency issue – NHK WORLD

Currency News
Japan, US finance chiefs to discuss currency issue

The finance chiefs of Japan and the US are expected to discuss stopping currency devaluation.

Japanese Finance Minister Taro Aso is arranging his schedule so he can meet with US Treasury Secretary Steven Mnuchin ahead of a US-Japan summit slated in Washington next week.

The US wants a new bilateral trade deal to include a provision aimed at preventing competitive currency devaluation.

The Americans want to protect domestic industries by stopping Japan from manipulating the yen in ways that make its exports more competitive. Japanese officials oppose such a measure.

They fear that putting the provision in a legally-binding trade agreement could limit Japan’s ability to intervene in currency markets when the yen appreciates excessively.

The administration of US President Donald Trump has included similar clauses in its latest trade agreements with Mexico and Canada.