Japan is getting a new currency czar just as the yen trades near its weakest levels in almost four decades, Japanese Minister of Finance Shunichi Suzuki said.
Atsushi Mimura has been appointed as the new Japanese vice minister of finance for international affairs, making him the face of official efforts to manage the yen, as Masato Kanda steps down, Suzuki said yesterday.
The move, which takes effect on July 31, is part of a normal personnel rotation and would not affect the country’s broad currency policies. Mimura would almost certainly follow the same script as his predecessor in advocating for a stable currency that reflects economic fundamentals.
Photo: EPA-EFE
Still, the role involves delicate communications with media. Kanda emerged as a highly charismatic policy spokesman after assuming the position in 2021.
During his tenure, Kanda navigated the COVID-19 pandemic, historic yen weakness, the outbreak of Russia’s full-scale invasion of Ukraine and Japan’s hosting of the G7 last year. He also oversaw a monthly record of ￥9.8 trillion in intervention to support the yen between late April and early last month, after the currency weakened past ￥160 to the US dollar.
The yen renewed a 38-year low earlier this week, touching ￥160.87 to the US dollar.
Weakness of the currency has spurred cost-push inflationary pressure through imports, generating widespread concern among business executives, officials and consumers. Japanese authorities stepped into the market at least twice since late April with a record amount of intervention.
In his new role, Mimura is to tackle multiple financial challenges, from ongoing global conflicts to debt and economic security.
The challenges include “the excessively weak yen, and two ongoing wars in Ukraine and the Middle East,” former Japanese vice minister of finance Tatsuo Yamasaki said. “The global economy is also facing a turning point in terms of monetary policy in Europe and the US. Under these circumstance, the vice finance minister will be involved in discussions on how to stabilize the global economy.”
There would be policy continuity, Yamasaki said.
In making statements about the economy or currencies, officials “are doing it as an organization under the guidance of the finance minister,” Yamasaki said. “The personnel changes won’t change this. People with the ability and experience to do it properly and with continuity are appointed to the position.”
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