Joachim Nagel, president of Germany’s Bundesbank and a member of the ECB Governing Council, publicly criticized the United States on September 1 for selling euros to support the Japanese yen without warning European partners in advance. The intervention, which took place around July 31, marked the first joint US-Japan currency operation in nearly three decades. Tokyo spent approximately 13.8 trillion yen, or roughly $87 billion, over just two days defending its currency. The ECB was only informed after the trades had been executed, representing a serious breach of protocol in post-World War II coordination among Western central banks. Nagel described it as being « blindsided » and emphasized that better coordination mechanisms are essential going forward.
Source: Read the original article
