TOKYO, March 17 (Reuters) – Japan’s authorities is intently coordinating with the Financial institution of Japan and monetary authorities abroad to forestall fallout from the disaster of confidence engulfing banks within the West, Finance Minister Shunichi Suzuki mentioned on Friday.
Market turmoil within the wake of the collapse of Silicon Valley Financial institution (SVB) (SIVB.O) and Signature Financial institution in the US has additionally ensnared Credit score Suisse (CSGN.S) and fuelled fears of one other world monetary disaster.
Japanese policymakers have thus far caught to the view that the potential for one other monetary disaster is low.
On Friday, Suzuki mentioned he was intently watching monetary markets in and out of doors of Japan and for any impression from issues within the banking sector within the West on the Japanese economic system.
“With the potential for numerous dangers in thoughts…the Monetary Providers Company will intently coordinate with the Financial institution of Japan and monetary authorities of different international locations, whereas rigorously watching the economic system, monetary markets and their results on monetary system,” Suzuki informed reporters.
Japan has multilateral foreign money swap preparations with Southeast Asian economies to organize for crises just like the 1997/98 Asian foreign money disaster. Nonetheless, a bilateral foreign money swap association with South Korea expired a number of years in the past.
“Nothing has been selected monetary monitor points resembling bilateral foreign money swap,” Suzuki added.
Reporting by Tetsushi Kajimoto; Enhancing by Muralikumar Anantharaman and Edwina Gibbs
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