Work Beyond G20 to Counter Trump's Currency Demands
What does Donald Trump's administration want from Japan regarding its exchange rate policy? As long as that is not made clear, we cannot afford to let our guard down.
Finance Minister Katsunobu Kato flew to the United States to attend the two-day G20 Finance Ministers and Central Bank Governors Meeting from April 23 to April 24. However, after the G20 summit concluded, he met separately with US Treasury Secretary Scott Bessent. The two reportedly discussed exchange rate policy, one of the topics raised in US-Japan tariff negotiations.
US President Donald Trump has been adamant in calling for a weaker dollar to boost American exports. Nevertheless, at the meeting, Bessent did not raise any hardline measures, such as setting an exchange rate target or establishing a currency agreement — steps that Japan is currently wary of.
Instead, both Japan and the US reaffirmed their commitment to allowing exchange rates to be determined by the market, in line with the G7 agreement.
The worst-case scenario has not materialized for the time being, but bilateral currency negotiations are set to continue. There is also the possibility that Trump may harden his stance. Come what may, Japan must not waver and maintain its stance of rejecting unjust demands.
Trump has, on more than one occasion, singled out Japan for allegedly encouraging a weaker yen. However, that accusation is a complete distortion of the actual situation. This is evident from the decisive policy measures the Japanese government has taken to counter the yen's rapid depreciation.
There has reportedly been discussion within the Trump administration of policy coordination similar to the Plaza Accord of 1985 designed to weaken the dollar. However, the economic situation today is quite different from how it was 40 years ago. The effects of foreign exchange intervention would undoubtedly be limited. The Bank of Japan head office in Chuo-ku Tokyo, March 19, 2024. (©Kyodo)
G7 countries share the view that market prices should not be manipulated artificially unless abrupt fluctuations are causing severe damage to an economy. That should be the basis for any negotiations.
The concern is that the United States will step up pressure to induce a stronger yen and thereby restrict Japan's monetary policy.
For example, interest rates have a major impact on creating a strong yen. Might not Trump exert pressure to have the Bank of Japan (BOJ) raise Japan's interest rates?
Trump has already urged Federal Reserve Board Chairman Jerome Powell to resign due to Trump's dislike for the FRB's monetary policy. In the end, although Powell refused to resign, Trump's high-handed behavior caused considerable confusion in the markets. Japan's negotiators should emphasize this point.
Meanwhile, the G20 summit failed to issue a final joint statement or chair's summary. Participating countries repeatedly noted the negative impact that the US tariff policy has had on the economy.
Many countries are currently negotiating with the US. Consequently, it will be difficult to find consensus in a forum that also includes China, which has taken countermeasures in response to the US tariffs.
We would like to see Japan address the uncertainty gripping the global economy by transcending the G20 framework and working with a wide range of countries, including those in Europe and Southeast Asia.
Author: Editorial Board, The Sankei Shimbun
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The additional securities issued under the Offering are subject to a four month hold period, expiring on November 23, 2025, in accordance with applicable Canadian securities laws." Notes on the PEA The PEA is preliminary in nature, includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All amounts are in United States dollars unless otherwise specified. Base case parameters assume a gold price of $2,250 per ounce. NPV is calculated as of the commencement of construction and excludes all pre-construction costs. All figures are displayed on a 100% ownership basis. (1) Operating costs consist of mining costs, processing costs and mine site G&A. 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The author is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues or any other relevant issue not reported in the technical report that could materially affect the mineral resource estimate. The Qualified Persons The independent and qualified person for the mineral resource estimate, as defined by NI 43-101, is Michael Dufresne, from APEX Geoscience Ltd. The qualified person overseeing the minable resource estimate used for the economic analysis is Jonathan R. Heiner, SME-RM, from Forte Dynamics, Inc. The qualified person overseeing the metallurgical testing and mineral processing is Deepak Malhotra, SME-RM, from Forte Dynamics, Inc. The qualified person overseeing the overall Preliminary Assessment and the economic analysis is Donald E. Hulse, SME-RM, from Forte Dynamics, Inc. The Qualified Person (as defined in NI 43-101) who reviewed and approved the scientific and technical information in the news release is Patrick McLaughlin, Senior Project Manager at Getchell Gold Corp. and is non-independent. About Getchell Gold Corp. The Company is a Nevada focused gold exploration company trading on the CSE: GTCH, OTCQB: GGLDF, and FWB: GGA1. Getchell Gold Corp. is primarily directing its efforts on its most advanced stage asset, Fondaway Canyon, a past gold producer with a large mineral resource estimate and recently published Preliminary Economic Assessment. The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release. Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the drill program, the mineralization extent and results, including statements respecting the ability of Getchell to extend the Project's gold mineralization and increase the mineral resource. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of Getchell have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. SOURCE Getchell Gold Corp.
