Japan urges reforms ahead of G7 meeting – Kanda

Japan’s chief currency diplomat, Masato Kanda urged action to tackle structural issues and boost international competitiveness ahead of the G7 finance ministers and central bankers’ meeting in Stresa, Italy, the Nikkei Asia reported on Wednesday.

Kanda, Japan’s vice finance minister for international affairs, raised concerns about the potential fragmentation of the global economy due to geopolitical reasons. He mentioned that the G7 meeting may address Chinese overproduction, which has led to recent US tariff increases on Chinese goods.

Japan has historically championed free, open, and rules-based trade. Kanda reiterated Tokyo’s stance on the importance of “ensuring fair competition” while simultaneously diversifying supply chains.

Kanda, admits concerns about competitiveness hurting the yen. He urges wage hikes and investment to boost long-term growth, but avoids discussing currency intervention.

He refrained from commenting on government involvement in currency markets and discussed development cooperation with emerging economies.

Japan co-chairs a committee of lenders to Sri Lanka and reported that a basic agreement on debt restructuring was reached in November. “We are currently finalising the details in a memorandum of understanding,” Kanda concluded.