Nakao Defends Policy Weakening Yen as Trade Tensions Mount

Japan’s top currency official pushed back against international criticism of the nation’s monetary policy, saying that the central bank isn’t engaged in a competitive devaluation of the yen.

Bank of Japan actions are “aimed at ending persistent deflation, so criticism that it’s a form of competitive devaluation is misplaced,” Vice Finance Minister Takehiko Nakao said in an interview in Tokyo yesterday. “Recent developments toward a weaker yen reflect the yen’s correction phase from one-sided and excessive gains until last year.”