(AmericanProsperity.com) – There have been talks about a potential intervention when it comes to the Japanese Yen. The recent conversation has included South Korea as well in saying that there may be a “coordinated intervention.”
The Japanese Yen has been at an all-time low in comparison to the U.S. dollar for over thirty years, especially since Japan’s recent rise in rates. Along with this, South Korean Won has also slipped at an all-time low, which has prompted an intervention on both fronts.
The United States addressed the “serious concerns” over their currency. The Treasury also said that all three parties would “consult closely on foreign exchange market developments.”
James Brady, who is vice president of advisory firm Teneo said that this would be yet another cooperation between the two countries to add on to other collaborations they’ve been a part of.
Brady addressed the plan, saying, “It is not unreasonable for markets to speculate on coordinated action given the unprecedented statement mentioning ‘serious concern’ on the part of Tokyo and Seoul.”
Many have said that a joint currency would help to bring together political and economic benefits from both sides. Brady said that for this to really take effect and make a difference the United States needs to be a part of the intervention. He said that if the U.S. is not on board then the currency will see “a short-term bump, before the yen returns to its previous path.”
Ultimately, many officials are feeling positive about the cooperation between the two countries and what it could do for the welfare of both countries. The two banks, the Bank of Japan and the Bank of Korea would jointly make the decision and come to an agreement on the currency as a team.
Copyright 2024, AmericanProsperity.com
