U.S. Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki agreed on Tuesday to work together to address rising food and energy prices, as well as volatility in currency markets, exacerbated by Russia‘s war in Ukraine, according to Reuters.
They said the war had increased exchange rate volatility, which could have adverse implications for economic and financial stability, and pledged to “cooperate as appropriate” on currency issues in line with their commitments as part of the Group of Seven (G7) and Group of 20 economies.
“We will continue to consult closely on exchange markets and cooperate as appropriate on currency issues, in line with our G7 and G20 commitments,” the two sides said in a joint statement following their meeting.
The two leaders also said they were united in their “strong condemnation of Russia’s unprovoked, unjustifiable, and illegal war against Ukraine”, adding they continued to increase Russia’s cost of its war by implementing economic and financial sanctions.
The Ukraine crisis has raised the risk of a global recession by stoking a surge in cost pressures and exacerbating supply chain disruptions in a blow to demand.
Yellen and Suzuki also urged China and other non-Paris Club creditors to cooperate “constructively” in working out debt treatments for low-income countries facing debt distress, while also touching on issues such as climate change and global tax reforms.