As global markets navigate elevated currency pressures, policymakers are increasingly turning to coordinated action. In a new article for the Institute of International Finance, BWC Member Marcello Estevão explains how the coordinated U.S.-Japan intervention to support the yen helped restore confidence and reduce one-way trading pressures. He notes that the intervention served broader US interests by helping Japan access dollar liquidity, reducing the need to sell U.S. Treasury securities as yields rise. Overall, he highlights the growing connection between exchange-rate policy, global dollar liquidity, and financial stability, while reinforcing the value of international cooperation.

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All views expressed by members are their own and do not necessarily reflect the views of the Bretton Woods Committee.