Bank of Japan officials: Market volatility, but short-term liquidity has not significantly decreased
ChainCatcher news: Akio Okuno, the head of monetary affairs at the Bank of Japan, stated on Tuesday that global markets are experiencing volatility due to uncertainties surrounding U.S. tariff policies, but short-term liquidity has not significantly decreased. "Unlike during the global financial crisis, we do not see a significant decline in short-term liquidity. However, the Bank of Japan will continue to closely monitor market developments and their impact on both the global and domestic economies," Akio said. Japan is preparing for trade negotiations with the United States this week, which may involve the tricky topic of exchange rate policy; some officials privately expect that the U.S. will call on Japan to support the yen.
Japanese Finance Minister Katsunobu Kato stated that both Japan and the United States believe that exchange rates should be determined by market forces and that excessive and disorderly fluctuations in exchange rates have adverse effects on economic and financial stability. Kato told Congress: "I hope to continue dialogue with the United States based on this common understanding." He declined to comment on potential discussions regarding exchange rate issues between both parties.
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