Japanese Finance Minister Kiichi Miyazawa told a parliamentary Upper House budget committee that he does not think the dollar is in a freefall. He said concerted intervention is only a supplementary measure to moderate volatility in exchange rates and repeated that policy coordination among major industrial nations is necessary. We cannot expect currency stability only through coordinated market intervention he said. Miyazawa also told the committee the U.S. Has not called on Japan to cut its 2.5 pct discount rate. Miyazawa said the government is not considering investing in U.S. Government bonds to help stabilize exchange rates. This matter has to be dealt with carefully because it involves the publics money and exchange rates are moving widely he added. The ministry will consider where to invest its funds when exchange rates become stable he said. Asked if Japan is considering a request to the U.S. For it to raise its discount rate to stabilize exchange rates Miyazawa said the U.S. Has not been able to take action now because it has to maintain its economic growth.
MIYAZAWA DOES NOT THINK DOLLAR IN FREEFALL