Japan working with G7 to have effective sanctions against Russia, says top FX diplomat

FILE PHOTO: Japan’s Deputy Finance Minister for International Affairs, Masato Kanda, poses for a photo during an interview with Reuters at the Ministry of Finance in Tokyo, Japan January 31, 2022. REUTERS/Issei Kato

February 28, 2022

By Takaya Yamaguchi and Tetsushi Kajimoto

The country’s top currency diplomat said Japan is working closely with the G7 nations to ensure effective economic sanctions against Russia and its central bank after the meeting. between government executives and central banks to debate the consequences of the Ukraine crisis.

“We will respond, working closely with the international community, including the G7 nations, so that we can save costs for Russia as much as possible.”

Kanda, who oversees Japan’s monetary policy at the Ministry of Finance (MOF), made the remarks after a meeting with his counterparts at the Bank of Japan and the Financial Services Agency – the meeting the first in about a year.

Japanese shares fell and the yen attracted demand as a safe-haven currency on Monday, after Western nations imposed new sanctions on Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payment system.

“We are adjusting (to Western economies) to make sure the sanctions are in effect,” Kanda said.

“Market stability is of the utmost importance,” he said, adding that the government is closely monitoring market developments.

Tripartite meetings are usually held during times of market stress to exchange views or concerns of policymakers about stock market or exchange rate movements. The meeting was last held in January of last year.

(Reported by Takaya Yamaguchi and Tetsushi Kajimoto, written by Leika Kihara; edited by Chang-Ran Kim, Shri Navaratnam and Muralikumar Anantharaman)