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☆ Japan, S.Korea to discuss FX swap deal in first finance talks since 2016
▼ + stars: | 2023-06-28 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

The swap deal expired in 2015 amid worsening relations over issues related to Japan's wartime occupation of the Korean Peninsula, and its restoration would symbolise the improvement in relations, analysts say. "We must strongly raise the momentum for historic improvement of Japan-South Korea relations. The ministers will also discuss global economic developments, infrastructure investment in developing countries, and the role both countries could play in multilateral financial cooperation. The bilateral finance talks, the eighth of their kind, were last held in 2016. Reporting by Tetsushi Kajimoto; Editing by Leika Kihara, Simon Cameron-Moore and Gerry DoyleOur Standards: The Thomson Reuters Trust Principles.

Persons: Yoon Suk Yeol, Kim Keon, Issei Kato TOKYO, Shunichi Suzuki, Choo Kyungho, Masato Kanda, Suzuki, Choo, Tetsushi Kajimoto, Leika Kihara, Simon Cameron, Moore, Gerry Doyle Organizations: Tokyo International, REUTERS, Japanese Finance, Korean, Thomson Locations: Korean, Tokyo, Japan, South Korea, China, North Korea, Ukraine

At its peak in 2011, the swap deal was worth $70 billion. With both sides sitting on ample foreign exchange reserves, the swap deal is unlikely to be put into action anytime soon, he added. Masato Kanda, Japan's vice finance minister for international affairs also said the currency swap deal would promote co-operation. The bilateral finance talks were to have taken place every year under a 2006 agreement, but were last held in 2016. With China and North Korea growing concerns, South Korean President Yoon Suk Yeol met with Japanese Prime Minister Fumio Kishida in May, the third between the two this year, marking a thaw in years of icy relations between the Asian neighbours.

Persons: Yoon Suk Yeol, Kim Keon, Issei Kato, Shunichi Suzuki, Choo, Suzuki, Masato Kanda, Kanda, Fumio Kishida, Tetsushi Kajimoto, Jihoon Lee, Edwina Gibbs, Clarence Fernandez, Kim Coghill Organizations: Tokyo International, REUTERS, Japanese Finance, Korean, Japanese, South Korea, Thomson Locations: Korean, Tokyo, Japan, Seoul TOKYO, SEOUL, South Korea, Seoul, China, North Korea, South

TOKYO, June 27 (Reuters) - The U.S. dollar held firm against major currencies on Tuesday as tension simmered in Russia and traders looked ahead to U.S. data that may determine the timing of further interest rate hikes. The Russian rouble weakened 0.41% versus the dollar at 84.75 after hitting its weakest level since March 2022. Japan intervened to boost the yen last year when it weakened past the 145 per dollar level. U.S. data this week include new orders for durable goods, housing figures, and consumer surveys from The Conference Board and University of Michigan. If the U.S. economic data comes out on the strong side, then further pricing in for the two rate hikes will push up the dollar," Yamamoto said.

Persons: Vladimir Putin, Shunichi Suzuki, Masafumi Yamamoto, Yamamoto, Christine Lagarde, Sterling, Rocky Swift, Christopher Cushing, Barbara Lewis Organizations: U.S, Japanese Finance, Conference Board, University of Michigan, Federal Reserve, Mizuho Securities, European Central Bank, ECB, Central Banking, Thomson Locations: TOKYO, Russia, Russian, U.S, Sintra , Portugal, China, China's

☆ China's rising clout spotlighted at finance chief meetings before G7 summit
▼ + stars: | 2023-05-15 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

China is among the biggest markets for most G7 countries, particularly for export-reliant economies such as Japan and Germany. In a joint statement on Saturday, the G7 finance chiefs stressed the urgency of addressing debt vulnerabilities in low- and middle-income countries, mentioning Zambia, Ethiopia, Ghana and Sri Lanka. "There were talks about coercion" at the G7 finance leaders' meeting, the Japanese finance ministry official said. The G7 summit will most likely have a special session on China to debate Beijing's "economic coercion" against other countries, according to a Reuters report. "No matter how the G7 want to fence in the Global South, it's not easy," said Atsushi Takeda, chief economist at the Itochu Economic Research Institute.

While the communique made no mention of the U.S. debt ceiling stalemate, it figured constantly in discussions. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook," they added in the communique after the meeting. G7 central bank chiefs vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. CHINA AND SUPPLY CHAINSSeeking to reassure investors after recent U.S. bank failures, the G7 finance chiefs retained an April assessment that the global financial system was "resilient". In the communique, the finance leaders set a year-end deadline for launching a new scheme to diversify global supply chains.

☆ G-7 finance chiefs warn of global uncertainty as US debt crisis looms
▼ + stars: | 2023-05-13 | by ( ) www.cnbc.com time to read: +2 min

Janet Yellen, US Treasury secretary, right, and Jeremy Hunt, UK finance minister, left, during a bilateral meeting on the sidelines of the Group of Seven (G-7) finance ministers and central bank governors meeting in Niigata, Japan, on Saturday, May 13, 2023. Finance leaders of the Group of Seven (G-7) rich nations warned of heightening global economic uncertainty on Saturday as they wrapped up a three-day meeting overshadowed by a U.S. debt ceiling stalemate and fallout from Russia's invasion of Ukraine. G-7 central bank chiefs also vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook." Japanese Finance Minister Shunichi Suzuki told a press conference after chairing the meeting that the debt ceiling showdown was discussed at Thursday's dinner session on the global economy.

The U.S. debt crisis is a headache for Japan, which is this year's G7 chair and the world's biggest holder of U.S. debt. Five more countries were invited to the outreach including Brazil, India and Indonesia - but not China - although emerging nations' debt problems will feature high on the agenda. On the other hand, Tokyo is courting China to join a creditor nations' meeting it initiated to resolve Sri Lanka's debt. "The agenda of talks show how G7 is becoming increasingly politicized in nature, with an emphasis on countering China." The International Monetary Fund last month trimmed its 2023 global growth outlook and warned a severe flare-up of financial system turmoil could slash output to near recessionary levels.

"Responding to such changes have become a common challenge for countries across the world, including Japan," he said, adding that the topic will be among many issues to be discussed at this week's G7 meeting. "We're watching the situation with a strong sense of alarm, as markets and economies are globally intertwined," he said, adding that Japan's banking system was stable as a whole. Japan would aim to issue a G7 joint communique after the finance leaders' meeting, which may stress the need for authorities to remain vigilant to banking-sector woes, two government sources with direct knowledge of the matter said. The Nikkei newspaper reported on Tuesday the G7 finance leaders will discuss setting up individual emergency plans in case they face digital bank runs. U.S. Treasury Secretary Janet Yellen, who will travel to Japan, will tell her G7 counterparts that the U.S. banking system remains sound, a senior Treasury official said on Friday.

The resumption of bilateral financial discussions comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea on Sunday and Monday for talks with President Yoon Suk Yeol. It also came as Asian policymakers, gathering for the annual Asian Development Bank (ADB) meeting this week in the South Korean city of Incheon, discussed regional economic challenges and ways to beef up buffers against various shocks. In a joint statement issued after their meeting on Tuesday, Asian finance leaders warned of risks to the region's economy and called for countries to stay vigilant to potential spillovers from the recent U.S. and European banking sector turmoil. Japan and South Korea will resume regular finance dialogue, likely to be held annually, at "an appropriate timing," Suzuki told reporters after the bilateral meeting. Choo is expected to visit Japan this year for another meeting with Suzuki, South Korea's finance ministry said.

The resumption of bilateral financial discussions comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea on Sunday and Monday for talks with President Yoon Suk Yeol. Japan and South Korea will resume regular finance dialogue, likely to be held annually, at "an appropriate timing," Suzuki told reporters after the bilateral meeting. Washington has pressed both countries to resolve these disputes to better counter rising threats from China and North Korea and other regional challenges. Under Yoon, South Korea has resumed trilateral military drills and agreed to more intelligence sharing on issues like tracking ballistic missile launches from North Korea. China's finance minister and central bank head were not present at a trilateral meeting, with their deputies attending instead.

SummarySummary Companies Japan, South Korea hold 1st bilateral finance meeting in 7 yearsTwo nations to resume regular finance dialogue, likely annualAsia policymakers to discuss safeguardsINCHEON, South Korea May 2 (Reuters) - Japan and South Korea held their first finance leaders' meeting in seven years on Tuesday and agreed to resume regular dialogue, as tensions in the region and slowing growth prod them to increase co-operation and mend strained relations. The resumption of bilateral financial discussions comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea next week for talks with President Yoon Suk Yeol. "Japan and South Korea are important neighbours that must cooperate to address various challenges surrounding the global economy, as well as the regional and international community," Japanese Finance Minister Shunichi Suzuki said at the meeting with his South Korean counterpart Choo Kyung-ho. Japan and South Korea will resume regular finance dialogue, likely to be held annually, at "an appropriate timing," Suzuki told reporters after the bilateral meeting. Choo is expected to visit Japan this year for another meeting with Suzuki, South Korea's finance ministry said.

SummarySummary Companies Japan, S.Korea must address geopolitical challenges - SuzukiS.Korea's Choo urges Japan to restore 'white list' statusResumption of dialogue underscores mending relationsINCHEON, South Korea May 2 (Reuters) - Japan and South Korea held their first bilateral finance leaders' meeting in seven years on Tuesday, a sign relations between the two are thawing amid shared challenges from geopolitical tensions and slowing economic growth. The resumption of bilateral financial talks comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea next week for talks with President Yoon Suk Yeol. "As for geo-political challenges, we're experiencing incidents like North Korea's nuclear missile development and Russia's invasion of Ukraine. Regular annual dialogue between the two countries' finance ministers has been suspended since 2016 due to disputes over wartime history. Suzuki said he hoped Japan and South Korea can continue with bilateral financial dialogue and that doing so would contribute to improving relations between the two countries.

☆ Japan, South Korea finance ministers meet for 1st bilateral meeting in 7 years
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: 1 min

INCHEON, South Korea May 2 (Reuters) - Japanese Finance Minister Shunichi Suzuki and his South Korean counterpart Choo Kyung-ho on Tuesday met on the sidelines of the Asian Development Bank (ADB) annual meetings held this week. It was the first bilateral finance leaders' meeting in seven years, highlighting improving relations between Japan and South Korea in the face of North Korea's frequent missile launches and China's more muscular role on the global stage. Reporting by Leika Kihara and Jihoon Lee Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

☆ Japan, South Korea hold first finance leaders' meeting in seven years
▼ + stars: | 2023-05-02 | by ( ) www.cnbc.com time to read: +1 min

Japan Finance Minister Shunichi Suzuki arrives for the G20 Finance Ministers and Central Bank Governors meeting on April 13, 2023. Japan and South Korea held their first bilateral finance leaders' meeting in seven years on Tuesday, a sign relations between the two are thawing as they confront shared challenges from geopolitical tensions and slowing economic growth. The two countries agreed to resume regular finance dialogue "at an appropriate timing," Japanese Finance Minister Shunichi Suzuki told reporters after the meeting. The resumption of bilateral financial discussions comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea next week for talks with President Yoon Suk Yeol. "Japan and South Korea are important neighbors that must cooperate to address various challenges surrounding the global and economy, as well as the regional and international community," Suzuki said at the meeting with his South Korean counterpart Choo Kyung-ho.

☆ South Korea and Japan's finance ministers to hold first bilateral talks in 7 years
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

SEOUL/TOKYO, April 17 (Reuters) - South Korea and Japan's finance ministers will hold a bilateral meeting early next month for the first time in seven years, heralding closer cooperation in economic policy that has been hampered by diplomatic conflict. South Korean Finance Minister Choo Kyung-ho told reporters during a visit to the United States that he has agreed to meet Japanese Finance Minister Shunichi Suzuki, according to a media pool report. "It is significant in that it will be the first step toward reviving regular bilateral meetings," Choo said, without elaborating. Regular annual meetings between the two countries' finance ministers have been suspended since 2016 due to disputes over wartime history. Financial markets will likely pay close attention to whether the finance ministers will discuss resuming a bilateral currency swap arrangement - one that had served as backstop against any potential currency crisis but which expired in February 2015.

It remains uncertain, however, whether Sri Lanka's biggest bilateral creditor - China - will join the initiative launched by Japan, this year's G7 chair, with the aim of kicking off a series of meetings among Sri Lanka's creditors. "I hope the creation of this platform will become a model case" for debt restructuring of middle-income countries, Suzuki said. Sri Lanka owes $7.1 billion to bilateral creditors, according to official data from its government, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India. The government also needs to renegotiate more than $12 billion of debt in eurobonds with overseas private creditors, and $2.7 billion on other commercial loans. Sri Lanka kicked off talks to rework part of its domestic debt this month and aims to finalise the deal by May.

WASHINGTON, April 13 (Reuters) - Japan, India and France on Thursday announced a common platform for talks among bilateral creditors to coordinate restructuring of Sri Lanka's debt, a move they hope would serve as a model for solving the debt woes of middle-income economies. It remains uncertain, however, whether Sri Lanka's biggest bilateral creditor - China - will join the initiative launched by Japan, this year's G7 chair, with the aim of kicking off a series of meetings among Sri Lanka's creditors. Sri Lanka owes $7.1 billion to bilateral creditors, according to official data from its government, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India. The government also needs to renegotiate more than $12 billion of debt in eurobonds with overseas private creditors, and $2.7 billion on other commercial loans. Sri Lanka kicked off talks to rework part of its domestic debt this month and aims to finalize the deal by May.

☆ Sovereign debtors, creditors agree on steps to jumpstart debt restructurings
▼ + stars: | 2023-04-13 | by ( Andrea Shalal | ) www.reuters.com time to read: +4 min

WASHINGTON, April 12 (Reuters) - Global creditors, debtor nations and international financial institutions on Wednesday agreed to improve data sharing, set clearer timetables and take other steps aimed at jumpstarting debt restructuring processes. Reuters reported Beijing was poised to drop its demand that multilateral development banks share in debt restructuring losses, partly in exchange for the IMF and World Bank providing earlier access to their debt sustainability analyses for countries receiving debt treatments. The statement said the debt roundtable participants agreed on the importance to urgently improve information sharing on macroeconomic projections and debt sustainability assessments in debt treatment cases. "This work will also help in clarifying potential timetables to accelerate debt restructurings," the statement said. It said the IMF, World Bank and the G20 presidency will continue to work closely together and with other partners to further support the international response to current debt challenges.

WASHINGTON, April 12 (Reuters) - Japan, France and India will announce a new platform for creditors to coordinate restructuring of Sri Lanka's debt, Japanese Finance Minister Shunichi Suzuki said on Wednesday, adding it would be "very nice" if China were to join the effort. As chair of this year's Group of Seven (G7) meeting, Japan has put efforts to address debt vulnerabilities of middle-income countries such as Sri Lanka as among priorities for debate. The announcement of the new platform, initiated by Japan, France and G20 chair India, will be made on Thursday, Suzuki said in a news conference after the G7 finance leaders' meeting. The platform will likely consist of a series of meetings of the creditor nations to discuss the debt. It will be very nice if China will join," Suzuki said.

☆ Japan, Germany agree to carefully monitor markets, coordinate as needed
▼ + stars: | 2023-03-18 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

TOKYO, March 18 (Reuters) - Japan and Germany agreed on Saturday to coordinate closely on financial jitters stemming from problems among Western banks while carefully monitoring global markets and economy, a Japanese finance ministry official told Reuters. The agreement came in a 45-minute meeting between Japanese Finance Minister Shunichi Suzuki and German Finance Minister Christian Lindner, visiting Tokyo for bilateral government consultations. We will carefully watch developments and coordinate with the central bank and overseas authorities," Suzuki told Lindner, according to the Japanese official. Both sides agreed on the need to closely monitor financial developments and coordinate as needed, the official said, without elaborating further. They agreed on the need to strengthen supply chains as an element of economic security.

March 15 (Reuters) - Swiss regulators said Credit Suisse (CSGN.S) can access liquidity from the central bank if needed, racing to assuage fears around the lender after it led a rout in European bank shares on Wednesday. The U.S. Treasury is monitoring the situation around Credit Suisse and is in touch with global counterparts about it, a Treasury spokesperson said. They slid again as a crisis of confidence gripped Credit Suisse on Wednesday after its largest investor said it could not provide Credit Suisse with more financial assistance because of regulatory constraints. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022. Ralph Hamers, CEO of Credit Suisse rival UBS (UBSG.S) said market turmoil has steered more money its way.

Two supervisory sources told Reuters that the European Central Bank (ECB) had contacted banks on its watch to quiz them about their exposures to Credit Suisse. The Swiss National Bank declined to comment on Switzerland's second-largest bank, after its largest investor said it could not provide Credit Suisse with more financial assistance because of regulatory constraints. Credit Suisse had appealed to the Swiss National Bank and Swiss financial watchdog FINMA for a public show of support, the Financial Times reported. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022. Ralph Hamers, CEO of Credit Suisse rival UBS (UBSG.S) said market turmoil has steered more money its way.

The drop in Credit Suisse shares led a 7% fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan. The Swiss National Bank declined to comment on Switzerland's second-largest bank, after its largest investor said it could not provide Credit Suisse with more financial assistance because of regulatory constrains. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022. Ralph Hamers, CEO of Credit Suisse rival UBS (UBSG.S) said it has benefited from market turmoil and seen money inflows.

March 15 (Reuters) - European bank stocks fell sharply on Wednesday, with embattled Credit Suisse (CSGN.S) tumbling to a new low, on renewed investor concerns about stresses within the sector triggered by Silicon Valley Bank's sudden collapse. A more than 20% drop in Credit Suisse shares led a 6% plus fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan. BlackRock (BLK.N) Chief Executive Laurence Fink warned on Wednesday that the U.S. regional banking sector remains at risk, and predicted further high inflation and rate increases. And in an attempt to avert a similar crisis down the line, the U.S. Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to SVB.

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