The U.S. Treasury Department said there

The U.S. Treasury Department said there were no exchange rate manipulators in 2023, but designating Japan as a target country is a hot topic.

However, there is a view that the U.S. takes issue with Japan’s involvement in selling yen to correct the weakening yen, which is a very wrong interpretation.

The purpose of the U.S. Treasury Department’s designation of exchange rate manipulators or monitoring countries is that it will not allow those countries to attempt to increase exports by driving their currency weak.

It is clear that the countries designated as observation targets are countries with huge surpluses against the U.S., such as China, Vietnam, and Taiwan, but they cannot allow exchange rate manipulation to depreciate their currencies.

Japan is also designated as a country with a large surplus with the United States, and intervening in the market to lead its currency to strength is not a problem from the perspective of the United States.

If anything, selling U.S. government bonds to raise funds to sell dollars may be contrary to U.S. national interests, so I would like to make some checks.

Therefore, the conclusion is that the U.S. is not opposed to Japan’s involvement in the purchase of yen.