Japan FinMin Aso: Closely watching China's economy, falling yuan

CHENGDU, China, July 23 (Reuters) - Japanese Finance Minister Taro Aso said on Saturday that he was closely watching China's economy and declines in the yuan as the impact of Britain's vote to leave the European Union dominated a gathering of the Group of 20 leading economies.

Speaking to reporters after the first day of the weekend meeting of G20 finance ministers and central bankers in the southwestern Chinese city of Chengdu, Aso said he had agreed with U.S (Other OTC: UBGXF - news) . Treasury Secretary Jack Lew on the need for structural reform in China and transparency in the yuan currency.

Aso said excess currency volatility and disorderly moves would hurt the economy, underscoring the resolve to ensure stability in currency and financial markets.

Given that the yen has stabilised at around 106 yen to the dollar, however, Aso said he did not raise the issue of currencies in a bilateral meeting with Lew earlier on Saturday. (Reporting by Tetsushi Kajimoto; editing by Adrian Croft)