Federal Reserve Chairman Ben S. Bernanke said Japan doesn’t manipulate the yen to gain an edge for the nation’s exports, calling its recent monetary policy part of a wider strategy aimed at boosting the world’s third-largest economy.
Responding to questions from the House Financial Services Committee today, Bernanke drew a distinction between the currency policies of Japan and China, which he said manages the value of the yuan to keep it below its market value.
“The Japanese approach is different. They’re not manipulating their exchange rate, they’re not directly trying to set their exchange rate at a given level,” Bernanke said.
“It’s in our interest to see Japan strengthen,” he said. “Japan is trying to expand its overall economy and therefore there is a benefit as well as a cost. That benefit is a stronger Japanese economy and a stronger Asian market.”
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