Japan’s Top FX Diplomat Kanda: Risks to global economy skewed to the downside

Japan's top currency diplomat Masato Kanda expressed his take on major global economies during his appearance on Thursday.

Key quotes

Chinese economy is slowing down due in part to policy failure.

US economy is stronger than expected, but Beige Book suggests signs of softening.

Risks to global economy skewed to the downside due to China slowdown, Russia-Ukraine conflict and now the situation in the Middle East.

Currency markets are in a deadlock, there is risk aversion in global markets.

Ukraine is striving to tackle reform, breaking free of corruption that has been rampant before war.

One more push is needed to resolve Sri Lanka's debt problems.

Asean+3 should set up emergency lending facility for swift borrowing for those in need in region.

Japan-South Korea FX swap arrangement underscores both countries' commitment to stabilize financial markets in the region.

Various factors determine currency markets, interest rates are only one factor.

Monetary policy has been stable overall.

It's normal not to announce currency intervention immediately after it's done.

Basically we won't make comment when intervening in FX market when asked about stealth intervention.

Currencies must move stably reflecting fundamentals.

If we don't act to excessive moves that could hurt those who are vulnerable.