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Japan’s Aso Is Said to Skip G-20 Amid Calls for Resignation

Japan’s Aso Is Said to Skip G-20 Amid Calls for His Resignation

(Bloomberg) -- Japanese Finance Minister Taro Aso won’t attend a gathering of global economic leaders in Argentina next week, according to people familiar with the matter, costing him the chance to push back against U.S. tariffs and voice his views on currencies.

Aso, who faces calls to resign after his ministry doctored files at the center of a cronyism scandal, will be represented by a deputy at the March 19-20 meeting of Group of 20 finance ministers and central bankers in Buenos Aires, said two ruling coalition lawmakers with knowledge of plans. Bank of Japan Governor Haruhiko Kuroda is expected to attend the G-20 gathering.

Japan’s Aso Is Said to Skip G-20 Amid Calls for Resignation

Vice Finance Minister Minoru Kihara will go instead of Aso, who will attend committee sessions in parliament, said the lawmakers. They declined to be named because there hasn’t been an official announcement. A spokesman for the finance ministry declined to comment. Masatsugu Asakawa, the chief of foreign-exchange policy, will also attend.

As finance minister and deputy prime minister, Aso leads all economic discussions with the U.S., overseas Japan’s currency policy and is also head of the agency regulating cryptocurrencies, which will be hot topic at this meeting. His absence at the G-20 will weaken Japan’s voice as other nations seek to resist U.S. protectionism.

“Japan can’t speak forcefully and get its message across unless it’s from someone in a position of responsibility,” said Atsushi Takeda, an economist at Itochu Corp. “Many nations will be asking the U.S. to exclude them from its tariffs. When your boss isn’t around, you will have to take a back seat.”

The scandal stems from the sale of land to an educational institution with ties to Prime Minister Shinzo Abe and his wife, and the finance ministry’s subsequent tampering with documents. While Aso and Abe have both denied any wrongdoing, the prime minister’s approval ratings have taken a turn for the worse. The scandal is not only a risk for Aso, but also threatens to undermine Abe’s bid to become Japan’s longest-serving leader.

While policymakers in Tokyo have been relatively quiet on the currency recently, there is some concern about the yen’s appreciation, which hurts exporters and undermines effort to push inflation higher. The yen has gained about 6 percent against the dollar this year.

Meanwhile, Japanese regulators have increased scrutiny of cryptocurrency exchanges after heists undermined faith in the industry.

To contact the reporters on this story: Takashi Hirokawa in Tokyo at thirokawa@bloomberg.net, Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net, Toru Fujioka in Tokyo at tfujioka1@bloomberg.net.

To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net, James Mayger

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