Mimura Atsushi (三村 淳), Vice Minister of Finance for International Affairs, is said to have led the coordinated U.S.-Japan intervention and now faces multiple hurdles in opening the path to becoming a candidate for the next governor of the Bank of Japan. Activity is intensifying around funding measures to address the yen's weakness and the direction of the BOJ's monetary policy.
At the end of July, the United States and Japan are said to have carried out a coordinated intervention, creating a surprise by halting the yen's decline. Mimura Atsushi (三村 淳), the Vice Minister of Finance for International Affairs said to have led the intervention, is attracting attention as a candidate for the next governor of the Bank of Japan.
It has been suggested that the U.S. side considered procuring dollar funds through the sale of U.S. Treasuries held in the Foreign Exchange Fund Special Account, with a view to securing funding to address the yen's weakness. The Japanese side is also said to have sought to contain the rise in long-term interest rates through the sale of U.S. Treasuries.
The challenge is to facilitate investment under the U.S.-Japan tariff agreement while also correcting the yen's weakness. While the U.S. side is calling for the Bank of Japan to raise interest rates at an early stage, Japan is being pressed to continue coordinating its fiscal and monetary policies.
Following discussions at the G20, Treasury Secretary Bessent is said to have emphasized the importance of measures to address the yen's weakness and sound monetary policy, and indicated support for an additional rate hike by the Bank of Japan. Future monetary policy decisions and adjustments in U.S.-Japan relations could affect Mimura Atsushi's (三村 淳) profile as a candidate for governor.