* Japan, U.S. reconfirm G7, G20 commitment on FX - Aso
* Japan tells G20 it is sticking to fiscal reforms
* Explains BOJ easing not aimed at weakening yen
By Leika Kihara
WASHINGTON, April 18 The Group of 20 has
accepted Japan's explanation that its aggressive monetary easing
is aimed at beating deflation and not at competitively weakening
Finance Minister Taro Aso said after a dinner session of the
G20 finance leaders that he affirmed Japan's resolve to continue
to put its fiscal house in order to maintain market trust in its
finances, and prevent a sudden spike in bond yields.
"Japan explained that its monetary policy is aimed at
achieving price stability and economic recovery, and therefore
is in line with the G20 agreement in February," Aso told
reporters. "There was no objection to that at the meeting," he
The G20 finance leaders are expected to confirm a February
pledge to avoid competitive devaluations at the two-day
gathering ending on Friday, held on the sidelines of the spring
meetings of the International Monetary Fund and World Bank.
The BOJ unleashed an intense burst of monetary stimulus
earlier this month, pledging to inject about $1.4 trillion into
the economy in less than two years, a major shift from its
previous incremental steps.
The measure has sharply undercut the value of the yen,
pushing it to multi-year lows against the dollar and the euro
and drawing some criticism that it is intentionally trying to
weaken the yen to gain a competitive advantage in exports.
"We explained (at the G20 meeting) that we're convinced that
the measures we're taking will be good for the global economy as
they will help revive Japanese growth," Aso said.
The International Monetary Fund and most advanced nations
have endorsed the BOJ's monetary easing as a necessary step to
beat deflation, but warned that it must be accompanied by
structural reforms and a credible long-term fiscal reform plan.
Some emerging nations worry that massive monetary expansion
by advanced economies could unleash huge international capital
inflows and drive up the value of their currencies, reducing the
competitive advantage of their exports.
Aso said he met U.S. Treasury Secretary Jack Lew before the
G20 meeting on Thursday and "reconfirmed the commitment made on
currencies in the G7 and G20 communiques."
Lew said the BOJ's latest action was consistent with the
February G20 agreement, but noted that the U.S. was monitoring
the Bank of Japan's actions for signs it was straying into the
area of currency intervention.