Japanese Finance Minister Taro Aso on Friday lashed out at China by saying that if the recent yuan devaluation is the beginning of frequent currency manipulation then Tokyo is going to have to take action.
If this move was an effort by Beijing to make its currency system a market-based one, then Japan welcomed the change, Aso said. However, he warned China that Japan would be watching closely to make sure this move wasn’t just a way to give its exports a competitive advantage.
“Japan would face a tough decision on how to respond if China intervenes frequently in the market,” Aso told a news conference after a regular cabinet meeting.
It was unclear what kind of choices Aso was implying Japan might face.
Full article: Japan’s finance minister warns China on yuan depreciation (Asia Times)