IMF says recent concerns over competitive currency devaluations are “overstated”
Public support for Japan’s policies continues from the G20, the US, the WTO and, according to this article, the IMF.
- The recent sizable depreciation of the yen has sparked concerns about competitive devaluations, the IMF said Thursday in a report on global prospects and policy challenges.
- “Taking a broader perspective, however, such concerns seem overstated,” it said,
The ‘broader perspective includes:
- The yen’s downswing also came after “a period where the exchange rate was assessed to be moderately overvalued,”
- The organization thus showed understanding of the Japanese government’s argument that the currency’s recent movements represent a correction to its excessive appreciation.