Japan and Germany Agree on Saturday to increase cooperation in carefully monitoring financial markets and to coordinate their responses as needed to ensure the stability of the global economy.
The agreement was reached during a 45-minute meeting between Japanese Finance Minister Shunichi Suzuki and German Finance Minister Christian Lindner, who was visiting Japan for bilateral government consultations.
Both the ministers met to discuss strategies for ensuring economic security, involving cabinet members from both Germany and Japan, which was initiated by German Chancellor Olaf Scholz and Japanese Prime Minister Fumio Kishida.
Following the collapse of Silicon Valley Bank (SVB) and Credit Suisse’s need to rely on $54 billion in central bank funding, banking stocks have taken a hit worldwide. This has sparked concerns about potential weaknesses in the financial system.
“Risk aversion has been seen in financial markets. We will carefully watch developments and coordinate with the central bank and overseas authorities. Japan’s financial system remains stable as a whole,” Suzuki told Lindner, according to the Japanese official.
According to an official, Suzuki and Lindner have reached an agreement to focus on imposing sanctions against Russia for its actions in Ukraine. They also aim to negotiate and implement a global digital tax and address the issue of developing countries’ debt in accordance with the Group of 20 framework.
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