Finance Minister Satsuki Katayama met US Treasury Secretary Scott Bessent in Tokyo on Tuesday. They reaffirmed monetary coordination to deal with speculative foreign exchange moves. The meeting lasted about 35 minutes behind closed doors at the Finance Ministry. Consequently, this monetary coordination follows a September joint statement allowing intervention to combat excess volatility. Katayama told reporters that both countries are coordinating closely on current market moves.
The US side reportedly understands recent yen-buying intervention by Japan. Japan and the Bank of Japan intervened in April for the first time in 21 months. Additional intervention occurred during Golden Week in May. Thus, monetary coordination proved effective when the yen sank to 158 per dollar in January. Washington conducted a rate check at that time, putting brakes on yen depreciation. Katayama said both sides reconfirmed the need to coordinate closely. She received full understanding from Bessent.
Katayama and Bessent also exchanged views on generative AI cybersecurity threats. US startup Anthropic’s Claude Mythos can identify system vulnerabilities effectively. This raises fears of AI weaponization by hostile nations. Therefore, monetary coordination extends beyond currency markets to financial system protection. Moreover, Japan will establish a public-private working group on Thursday to protect against AI threats. Katayama confirmed Washington will share its insights on AI security. She said Japan will coordinate with Western nations to prevent AI weaponization.
This marked the fifth face-to-face meeting between the two finance leaders. Their last talks occurred on April 15. Bessent arrived in Japan before accompanying the US delegation to Beijing. The US-China summit takes place on May 14 and 15. Consequently, monetary coordination remains a key pillar of Japan-US economic ties. Katayama avoided commenting on BOJ rate hikes, citing the ministry’s relationship with the central bank. The meeting reaffirmed both countries’ commitment to stable currency markets. For now, monetary coordination will continue through regular dialogues.
