Miyazawa Says Policy Coordination key to Currency

Japanese Finance Minister Kiichi Miyazawa told a press conference the basic solution to currency instability among major nations is economic policy coordination.

He said that is a time-consuming process as coordination does not always proceed in a way policy makers envisage. “That is democracy,” he said. Upon that foundation, Miyazawa said, there must be coordinated intervention. Major nations have sufficient funds to continue concerted intervention, he added.

“Without doubt this set-up of coordinated intervention will continue to operate,” Miyazawa said.

Miyazawa said Prime Minister Yasuhiro Nakasone and U.S. President Ronald Reagan are likely to reaffirm the Louvre and Washington Group of Seven (G-7) agreements on currency stability when they meet later this week.

Asked whether the dollar is declining against all major currencies, not only the yen, Miyazawa declined to make any comments.

He reiterated that many major nations have undertaken coordinated intervention in recent weeks to prop up the dollar, including countries who are not members of the G-7.