Japan Can Offset China Yuan Move by Easing, Says Abe Adviser
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Japan “need not worry” about China’s devaluation of the yuan because it can always offset the effects by easing monetary policy, said an adviser to Prime Minister Shinzo Abe.
Depreciation in China’s currency will tend to boost the yen, and if external demand weakens too much the Bank of Japan may increase monetary stimulus, said Koichi Hamada said.