Bundesbank President Joachim Nagel criticized the United States for selling euros during a recent attempt to support the Japanese yen without prior consultations with European partners.
«Of course, it would have been desirable — and this has also been common practice in the past — to coordinate such interventions in advance and hold consultations on them,» Joachim Nagel said during a press conference in Asheville, North Carolina, where he is attending a meeting of finance ministers and central bank governors of the Group of Twenty.
US Used Euros Without Prior Coordination
Japan intervened in the foreign exchange market in late July, and US Treasury Secretary Scott Bessent confirmed in early August that the US had helped counter the «disorderly» fluctuations of the yen. It was later revealed that the US used euros instead of dollars, marking an unprecedented departure from established practice.
«This issue was raised and openly discussed here,» Joachim Nagel said. «I think it received a positive response, as people understood why we in Europe, in the Eurosystem, were not very pleased with the lack of prior coordination.»
The US and Japan last jointly intervened in the foreign exchange market to support the yen in 2011, when the Group of Seven countries helped weaken the excessively strong Japanese currency.
«What is important now, looking to the future, is that if such measures are ever taken again, I simply expect these issues to be coordinated in advance among us,» Nagel added.
According to Bloomberg
