JAPAN, US discuss national current account imbalances
US Treasury Secretary Steven Mnuchin speaks to reporters during the G20 finance ministers and central bank governors meeting in Fukuoka, southwestern Japan, Jun. 8, 2019. EPA-EFE/STRINGER
US Treasury Secretary Steven Mnuchin (L) talks with China's Central Bank Governor Yi Gang during the G20 Finance Ministers and Central Bank Governors Meeting in Fukuoka, Japan, Jun. 8, 2019. EPA-EFE/KIM KYUNG-HOON / POOL
Fukuoka, Japan, Jun 9 (efe-epa).- The United States Treasury Secretary and Japanese Finance Minister on Sunday discussed ways to address their current account imbalances.
Steven Mnuchin and Taro Aso discussed these and other issues in a bilateral meeting on the sidelines of the gathering of finance ministers and central bank governors of the G20, which is being held over the weekend in the southwestern Japanese city of Fukuoka.
The meeting was being held amid trade tensions between the US and several countries, particularly China.
"We discussed the ongoing close cooperation between the US and Japan across a number of economic and security issues," he tweeted.
Both countries are currently negotiating a bilateral trade deal, with which the US hopes to compensate the trade deficit that it has with Japan.
During the meeting on Sunday with Mnuchin, Aso insisted on Japan's stance to not include any provision on monetary policy in the trade agreement and maintained that the imbalances in the national current account balance should be discussed at a multilateral forum such as the G20, the Japanese official sources said.
US President Donald Trump on several occasions has accused Japan of devaluing the Yen to boost its automobile exports to the US and threatened to impose limits on the Japanese industrial sector.
The Japanese currency has remained weak against the dollar, the euro and others during the last few years as a result of monetary easing measures by the Bank of Japan, a strategy aimed at bringing Japan out of its deflationary cycle.
The devaluation of Yen has helped Japanese exports by making the country's firms more competitive abroad and increase its revenues.
During the meeting of G20 ministers, which concludes on Sunday, the effects of protectionist policies and the growing imbalances between the trade flows on the global economy were also discussed.