Japanese companies with businesses overseas are settling trades in dollars to curb costs as the yen strengthens, said Tatsuo Yamasaki, director general of the international bureau at Japan’s Ministry of Finance.
Government attempts to internationalize the yen have lapsed as domestic companies continue to deal in dollars, Yamasaki said at a seminar at an International Monetary Fund event in Tokyo today. The yen is used to settle 40 percent of export trades, and 23 percent for imports, he said.
Yamasaki said Japanese banks’ growing presence in global finance after the financial crisis is a step towards internationalizing the yen.
Japan will continue talks with the Chinese government to strengthen cooperation in financial markets as the two nations are in “a mutually beneficial relationship,” he said.