Japan Must Be Careful Not To Fall Into Another Round Of Economic Recession.

Jacob J. Lew, the US Treasury Secretary, urged Japan to shift its focus from exports to boosting domestic demand, and said that despite the appreciation of the yen, the foreign exchange market is still in order, "Jacob said.

On April 14-15, in 2016, the second meeting of G20 finance ministers and central bank governors was held in Washington.

At this meeting, an important issue for central bank governors is how to promote consumption and expand demand.

In the G20 communiqu, the G20 finance ministers and central bank governors reiterated that they would avoid competitive devaluation and not set the exchange rate targets for competitive purposes, and use monetary and fiscal policies to boost economic growth.

"In view of

The growth rate is down, and Japan needs to focus on domestic demand rather than external demand, "Lu told a news conference in Washington on Friday." the overall fiscal policy should be able to support it, and an ambitious structural reform agenda must first have measures to boost short-term economic growth.

Despite the recent appreciation of the yen, the foreign exchange market is still in order. "

In addition, Lu warned that Japan must be careful not to fall into another round of economic recession, which means that Japan should be cautious about how to grasp the opportunity to increase tax in the future and whether the government expenditure can offset the increase in taxes without causing financial drag.

He also stressed the importance of Japan's commitment to the G20 Conference on exchange rate issues.

However, Japanese finance minister Taro Aso said the Bank of Japan's policy is not affected by the international community's commitment to avoid exchange rate targeting.

"G20 has promised to avoid currency competitive devaluation, but this commitment does not apply to negative interest rates and other policies aimed at the domestic market," Taro Aso told other finance ministers at the G20 conference in Washington.

Taro Aso also said he and Lou did not want to see it.

Excessive volatility.

IMF, head of Japanese affairs in Tokyo, said IMF believes there is no reason for Japan to intervene in the exchange market.

G20 finance ministers and central bank governors reiterated their previous commitment to avoid obtaining currency gains through competitive devaluation.

Lu then delivered the above speech.

Since the announcement of negative interest rates in Japan, the yen has not risen, and the negative interest rate policy has been questioned.

This year, the yen has risen 11% against the US dollar. In the major currencies that Bloomberg has tracked, the yen is the largest currency after Brazil Real.