Japan, US conduct rare coordinated Yen-buying intervention; Tokyo signals more action
Tokyo, August 3
Japan and the United States carried out a rare coordinated yen-buying intervention to curb currency volatility, with Tokyo stating further action will be taken if needed and signalling plans to use the Federal Reserve's FIMA Repo Facility, as per a statement by Japan's Ministry of Finance on Monday.
The Ministry has stated that it could take further action if necessary, further indicating its plans to use the Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility.
"Japan plans to utilize the Federal Reserve's "Foreign and International Monetary Authorities Repo Facility" (FIMA Repo Facility) in the future," it said.
The coordinated intervention was carried out in line with the Japan-U.S. Finance Ministers' Joint Statement issued in September 2025, in response to recent excessive volatility and disorderly movements in the yen.
"This joint action was taken pursuant to the U.S.-Japan Finance Ministers' Joint Statement issued in September 2025 and countered excessive volatility and disorderly movements in the Japanese yen in recent months," the Ministry noted.
The Ministry said that on Friday, July 31, Japan's Ministry of Finance conducted yen-buying intervention in coordination with the U.S. Department of the Treasury.
It confirmed, "The Ministry of Finance of Japan is closely monitoring the situation and maintaining tight communication with the U.S. Department of the Treasury," stressing, "We will not hesitate to carry out further coordinated interventions in the future if necessary."
In a recent development, the Japanese government cut its economic growth forecast for the current fiscal year to 0.9 per cent from 1.3 per cent, citing the impact of higher crude oil prices on the import-dependent economy, Kyodo News reported.
The government said a weaker yen against the US dollar and elevated crude oil prices stemming from the conflict in the Middle East pose risks to economic growth.
— ANI
Reader Comments
This is what coordinated diplomacy looks like. Japan's economy is import-dependent, so a weak yen hurts big time. Using the Fed's FIMA Repo Facility is smart - gives them access to dollars without selling their treasuries. Meanwhile, our RBI could learn a thing or two about proactive moves.
Hmm, but does this actually fix the core problem? Japan's growth forecast was cut to 0.9% - that's not just about the yen, it's about structural issues. This intervention is like putting a band-aid on a deeper economic wound. Still, good to see US-Japan solidarity on this.
The Middle East conflict is really hitting import-dependent economies like Japan. Crude oil prices going up + weak yen = perfect storm. At least they're being proactive rather than just letting the market run wild. Respect for that.
As someone watching the rupee too, I get the pain. Currency volatility is brutal for businesses and everyday imports. This shows that even developed economies need to step in sometimes. Maybe we need similar strategies back home instead of just watching the rupee slide.
Coordinated intervention sounds good on paper, but in the long run, markets usually win. Japan has been struggling with yen weakness for a while now. With the Fed's support though, this could actually have more staying power than past solo attempts. Let's see how it plays out.
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