WASHINGTON (Reuters) -Japanese Finance Minister Katsunobu Kato said on Friday authorities should monitor risks and guard against excessive exchange-rate volatility that could hurt the economy.
“The outlook of the global economy is uncertain due to trade measures and geopolitical tensions, constraining the behavior of businesses and consumers,” Kato said in the statement to the International Monetary and Financial Committee.
The global economy is also facing long-term structural transformation such as innovation in artificial intelligence, climate change, and demographic shifts, he said, adding that failure to adapt to such changes could widen social disparity and cause political instability.
“It is also essential to monitor risks that could trigger major adjustments in financial markets and to guard against excessive volatility or disorderly movements in exchange rates that could undermine economic and financial stability,” he said.
(Reporting by Leika Kihara; Editing by Andrea Ricci)
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