US backs Japan's forex intervention, ready for further joint action: Scott Bessent
New Delhi, August 3
US Treasury Secretary Scott Bessent voiced support for Japan's recent foreign exchange intervention, saying coordinated action with the United States had countered disorderly movements in the yen and indicating Washington's readiness for further joint intervention.
In a post on X, Bessent said the US Treasury remains in close communication with Japan's Ministry of Finance (MOF) and the Bank of Japan (BOJ).
"We strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen," Bessent said.
He added, "Treasury remains attentive and in close communication with our counterparts at MOF and BOJ. We will not hesitate to participate in further joint intervention."
Praising the Japanese government's economic approach, Bessent said, "The Takaichi government is moving into an exciting new phase of Abenomics, as nearly 15 years of powerful stimulus have created durable, robust underlying economic dynamics."
Abenomics refers to the economic policies introduced in 2012 by former Japanese Prime Minister Shinzo Abe, centred on aggressive monetary easing, flexible fiscal spending and structural reforms.
Bessent also described the Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility as an "important backstop" and said, "The FIMA Repo Facility is an important backstop. We should encourage it to be upsized in the coming months."
Meanwhile, Japan's Ministry of Finance said Japan and the United States carried out a coordinated yen-buying intervention to address excessive volatility and disorderly movements in the Japanese currency. The ministry said the intervention was conducted in line with the Japan-US Finance Ministers' Joint Statement issued in September 2025 and added that further action could be taken if necessary, while indicating plans to use the Federal Reserve's FIMA Repo Facility in the future.
— ANI
Reader Comments
It's good that the US is supporting Japan on yen valuation. For emerging markets like India, this kind of cooperation between major economies is a sign that they're serious about currency stability, which helps global trade. Hopefully RBI takes note of these strategies too.
The FIMA Repo Facility mention is crucial here. It gives other countries a reliable backstop in times of dollar liquidity crunch. India also uses such mechanisms during stress periods. Good to see the Fed ready to expand it for global stability.
Just another way the US and Japan are protecting their own interests. Meanwhile, emerging markets like India have to manage volatility on their own most of the time. I wish there was a more balanced system for smaller economies' currencies too. 🤔
This coordinated intervention shows how interconnected global economies are. If the yen stabilises, it reduces global uncertainty, which indirectly helps Asian markets like India too. Cautiously positive development for our exporters and importers. 🌏
I find it ironic that the US, which often criticises other countries for currency manipulation, is now openly supporting Japan's forex intervention. While this is for yen, it raises questions about fairness in global forex policies for nations like India.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.