Editorial

The current close coordination between Japan and the United States on foreign exchange and currency matters represents a powerful symbol of alliance and mutual benefit in an era of global economic uncertainty. Recent affirmations by diplomats and finance officials from both nations underscore their commitment to consult closely on forex issues, ensuring market-determined exchange rates while addressing excessive volatility that could harm their economies. This partnership, highlighted in bilateral meetings and joint statements, helps stabilize the yen-dollar dynamics amid shifting trade winds, inflationary pressures, and geopolitical tensions.

For Japan and the US, this cooperation delivers tangible advantages. The United States benefits from a stable yen that supports balanced trade relations and curbs disruptive currency wars. A stronger, less volatile yen reduces the risk of Japanese exports undercutting American industries excessively, fostering fairer competition and encouraging investment flows. It also aligns with broader US goals of economic security in the Indo-Pacific, where a resilient Japanese economy bolsters supply chains and counters regional challenges. For Japan, US backing provides crucial diplomatic cover and market confidence when intervening to prevent sharp yen depreciation, which could otherwise fuel imported inflation and strain households. Coordinated signals deter speculative attacks on the currency, allowing Tokyo to pursue monetary normalization—such as gradual interest rate adjustments—without triggering panic. This synergy enhances global financial stability, as the world’s two largest economies set a model for responsible currency management.

Beyond economics, this collaboration carries profound symbolic weight for Japan. The horrors of World War II, including the atomic bombing of Nagasaki on August 9, 1945, left deep scars on the national psyche. Yet, over eight decades, Japan has transformed unimaginable pain into a foundation for peace, reconciliation, and forward-looking partnership. Forging such tight economic ties with the United States—once an adversary—exemplifies this journey of healing and progress. By working hand-in-hand on currency matters today, Japan demonstrates that historical wounds need not define the future. Instead, shared prosperity and security can bridge divides. Nagasaki’s legacy of advocating for nuclear disarmament and peace coexists with pragmatic alliances that promote stability worldwide.

In moving forward, Japan honors its past by embracing cooperation that benefits both nations and the international order. This US-Japan currency coordination is more than technical diplomacy; it is a testament to resilience, forgiveness, and the power of partnership to build a better tomorrow for generations to come.

• SAS Kirmani