Quick News Bit

Russia sanctions, Ukraine support to be G7 priority, says Japan diplomat


Article content

TOKYO — Japan, this year’s chair of the Group of Seven (G7), expects Russia’s invasion of Ukraine to dominate talks among the world’s major advanced economies, its top finance diplomat, Masato Kanda, told Reuters.

“Sanctions against Russia and support for Ukraine will be a top priority at G7 financial leaders’ meetings under Japan’s chair,” said Kanda, who will oversee G7 deputy-level talks on economic policy this year.

Article content

Among other issues at the top of the G7 agenda would be global debt problems, Kanda said in an interview. A sharp rise in U.S. interest rates has weighed on the dollar-denominated debt of emerging market economies, already weakened by the pandemic, and now reeling from the high price of food and energy imports as a result to the Ukraine war.

Advertisement 2

Article content

Kanda said Japan was working hard to help Sri Lanka, which is suffering its deepest economic crisis in 70 years, by coordinating with the Paris Club of creditor nations and the International Monetary Fund to ensure the participation of China and India in efforts to restructure the island nation’s debt.

“It is desirable to work with these non-Paris Club countries in the same way with the Common Framework,” he said, referring to a Group of 20 mechanism designed to provide a swift and comprehensive debt restructuring for nations facing difficulty meeting debt obligations after the COVID-19 shock to their economies.

“If this is realized, it would pave the way to carry out debt restructuring for other middle-income countries.”

Advertisement 3

Article content

Separately, Tokyo plans to spearhead discussions on ramping up a regional multilateral currency swaps arrangement – called the Chiang-Mai Initiative Multilateralisation (CMIM) agreement – to prepare against future financial crises and natural disasters, Kanda said.


Turning to the currency markets, Kanda reaffirmed Japan’s determination to intervene in the foreign exchange market to curb excessive volatility in the yen, as it did last year, intervening to buy yen for the first time in 24 years.

“There’s no change to this thinking,” said Kanda, who is vice finance minister for international affairs, and oversaw last year’s intervention to prop up the yen after it fell around 30% to 32-year lows near 152 to the dollar.

Advertisement 4

Article content

The yen has recovered ground since, and is now trading around 130 per dollar.

Kanda emphasized that the government aims to keep currency moves stable.

“Sharp, one-sided moves as seen last year are undesirable and cannot be tolerated from the viewpoints of people’s livelihoods and corporate activity,” he said.

He said that while the finance ministry oversaw the exchange the rate, the Bank of Japan (BOJ) has independence in guiding monetary policy and is focused on achieving price stability.

“Generally speaking, the BOJ targets price stability, while we aim for currency stability,” he said.

Some analysts have criticized the BOJ’s ultra-loose monetary policy, saying that it triggered the unwelcome plunge in the yen’s value last year that inflated the cost of raw material imports. (Reporting by Tetsushi Kajimoto; Additional reporting by Kentaro Sugiyama; Editing by Robert Birsel and Simon Cameron-Moore)


Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment