U.S. - Japan Finance Ministers’ Joint Statement

As trusted partners, the United States Department of the Treasury and the Japanese Ministry of Finance agreed to continue their close consultations on macroeconomic and foreign exchange matters. They reaffirmed that exchange rates should be market determined and that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. They also reconfirmed they have undertaken under the IMF Articles of Agreement to avoid manipulating exchange rates or the international monetary system to prevent effective balance of payments adjustment or to gain an unfair competitive advantage.In addition,they reconfirmed their recognition of the G7 commitment that fiscal and monetary policies will remain oriented towards meeting respective domestic objectives using domestic instruments and will not target exchange rates for competitive purposes;they agreed that any macroprudential or capital flow measures will not target exchange rates for competitive purposes;they agreed that other government investment vehicles such as pension funds continue to invest abroad for risk-adjusted return and diversification purposes,