Japan names new currency czar as yen continues its slide, Nikkei reports

TOKYO - Japan is getting a new currency czar just as the yen trades near its weakest levels in almost four decades, the Nikkei Shimbun reported.

The Finance Ministry appointed Atsushi Mimura as its new vice finance minister for international affairs, making him the face of official efforts to manage the yen as Masato Kanda retires, according to the report on June 28.

The move is part of a normal personnel rotation and won’t affect the country’s broad currency policies. Mr Mimura, who is currently director general of MOF’s international bureau, will almost certainly follow the same script as his predecessor in advocating for a stable currency that reflects economic fundamentals.

Still, the role involves delicate communications with media personnel. Mr Kanda emerged as a highly charismatic policy spokesman after assuming the position in 2021. During his tenure, Mr 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 Group of Seven finance meeting last year.

Most recently Mr Kanda oversaw a monthly record of ¥9.8 trillion (S$82.7 billion) in intervention to support the yen between late April and early May 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 dollar. It was trading around 160.65 on the morning of June 28..

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 to support the yen with a record amount of intervention.

In his new role, Mr Mimura will tackle multiple financial challenges, from ongoing global conflicts to debt and economic security. Earlier in his career, he held positions at the Financial Services Agency, the Bank for International Settlements, as well as the Administration and Legal Department, where he helped liaise with the parliament.

Mr Mimura’s challenges include “the excessively weak yen, and two ongoing wars in Ukraine and the Middle East,” according to Tatsuo Yamasaki, a former vice finance minister who now teaches at the International University of Health and Welfare.

“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 stabilise the global economy.” BLOOMBERG