Japan Gets Calls Not to Drive Down Yen

Other nations worry BOJ’s aggressive easing threatens their exports.

Japan will be reminded of its pledge not to drive down the yen when Group of 20 finance chiefs meet this week for the first time since the world’s third-largest economy intensified its campaign to defeat deflation.

As G-20 finance ministers and central bankers prepare to convene this week in Washington, the U.S. Treasury is saying it will press Japan to refrain from competitive devaluation and European governments are urging it not to become too reliant on fiscal and monetary stimulus.

Japanese Defense

Japanese policy makers have already launched their defense against criticism that they are driving down the yen. Mitsuhiro Furusawa, the vice-finance minister for international affairs, said in an April 12 interview that Japanese monetary policy is “clearly aimed at getting Japan out of deflation” and that officials will “properly explain” their position in Washington.

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