Bank of Japan officials: Market volatility, but short-term liquidity has not significantly decreased

ChainCatcher news, Bank of Japan's head of monetary affairs Akio Okuno said on Tuesday that global markets are experiencing volatility due to uncertainties surrounding U.S. tariff policies, but short-term liquidity has not significantly declined. "Unlike during the global financial crisis, we are not seeing a significant drop in short-term liquidity. However, the Bank of Japan will continue to closely monitor market developments and their impact on the global and domestic economy," Akio stated. Japan is preparing for trade negotiations with the U.S. this week, which may involve the tricky topic of exchange rate policies, with some officials privately expecting the U.S. to call on Japan to support the yen.

Japanese Finance Minister Katsunobu Kato said that both Japan and the U.S. believe that exchange rates should be determined by the market, and excessive and disorderly fluctuations in exchange rates have adverse effects on economic and financial stability. Kato told the Diet, "I hope to continue dialogue with the U.S. based on this common understanding." He declined to comment on the exchange rate issues that may be discussed by both sides.