Japan denies using US Treasury holdings as trade leverage

Japan’s Finance Minister clarified on Sunday that the country does not intend to use its $1 trillion-plus holdings of US Treasuries as a bargaining chip in trade talks with Washington.

“My comments were made in response to a question whether Japan could, as a bargaining tool in trade negotiations, explicitly reassure Washington it wouldn’t sell its Treasury holdings easily,” Japanese Finance Minister Katsunobu Kato said.

In a television interview on Friday, Kato mentioned that Japan’s US Treasury holdings could be utilised as leverage in trade negotiations, highlighting for the first time its position as a significant creditor to the US.

Attribution: Reuters

Subediting: M. S. Salama