Japan and U.S. Unite Against Yen Volatility
The Japanese Ministry of Finance (MOF) has announced that it conducted a joint yen-buying intervention with the U.S. Treasury Department on Friday, August 3, U.S. Eastern Time.
According to Minister of Finance Satsuki Katayama, the coordinated action was based on a joint statement issued last September by the two countries' finance chiefs and aimed to counter excessive volatility and disorderly movements in the Japanese yen in recent months.
Katayama stated that Japan plans to utilize the U.S. Federal Reserve's Foreign and International Monetary Authorities Repo Facility, which provides temporary dollar liquidity to foreign authorities.
The latest action marks the first coordinated foreign exchange market intervention by Japanese and U.S. authorities since a massive earthquake and tsunami struck northeastern Japan in March 2011.