TOKYO, Feb 18 - The International Monetary Fund does not hold a view on what the yen’s ideal valuation should be, Rahul Anand, the IMF’s mission chief for Japan, said on Wednesday.
Speaking at an online news briefing, Anand emphasized that the yen’s value is determined by market forces. He linked that outcome to Japan’s economic openness and its open capital account, which contribute to movements in the currency.
"With (Japan’s) open economy and open capital account, the yen has been moving around. The Japanese authorities are committed to a flexible exchange-rate regime,"
Anand went on to underline the IMF’s position on currency valuation.
"Therefore, the price or the value of the yen is determined by market forces... We don’t think there is a right level of the yen," he said.
When asked whether there were circumstances that could lead Japan to step into the currency market to prop up the yen, Anand declined to offer a forecast of possible policy moves.
"We cannot speculate on authorities’ future actions."
Context and interpretation
The IMF’s comments framed the yen’s recent fluctuations as a feature of an open economy operating under a flexible exchange-rate framework. The institution did not suggest any benchmark or target level for the currency and explicitly avoided predicting whether or when Japanese authorities might intervene in foreign-exchange markets.
What was said and what remains uncertain
- Rahul Anand reiterated the IMF’s position that there is no single "right" exchange rate for the yen, attributing its level to market forces within an open capital account.
- The IMF noted Japan's official commitment to a flexible exchange-rate regime, which it presented as the backdrop for recent currency movements.
- On the prospect of intervention by Japanese authorities to support the yen, the IMF mission chief did not provide guidance and refused to speculate on potential future actions.
Further information
The statements were delivered during an online briefing and reflect the IMF mission chief’s assessment at that time. They do not include any additional commentary on specific policy tools, timing, or thresholds that might prompt official intervention.