G-7 countries announce joint currency intervention to weaken the Japanese yen

G-7 countries announce joint currency intervention to weaken the Japanese yen

2011-03-19 00:28:10 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Finance ministers and other officials from the Group of Seven (G-7) on Friday discussed with Japanese officials the ongoing situation in quake-hit Japan.

The G-7 Finance Ministers and Central Bank Governors jointly decided, at the request of the Japanese government, on concerted intervention in exchange markets. It comes as the disasters in Japan have sent the Japanese yen to record levels.

"We express our solidarity with the Japanese people in these difficult times, our readiness to provide any needed cooperation and our confidence in the resilience of the Japanese economy and financial sector," a G-7 statement said after the meeting, where officials were briefed by their Japanese colleagues on the current situation and the economic and financial response put in place by the authorities.

"In response to recent movements in the exchange rate of the yen associated with the tragic events in Japan, and at the request of the Japanese authorities, the authorities of the United States, the United Kingdom, Canada, and the European Central Bank will join with Japan, on March 18, 2011, in concerted intervention in exchange markets," the statement said. "As we have long stated, excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will monitor exchange markets closely and will cooperate as appropriate."

It is the first time in more than 10 years that the G-7 decided to intervene in currency markets. The last time was in late 2000 when the G-7 intervened to strengthen the Euro.

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