Japan has renewed its calls for help for its beleaguered economy from the West.

Japanese leaders are urging finance ministers from other developed countries to help it weaken the yen. The dramatic rise of the yen has made Japanese exports much more expensive, and may put paid to the hopes that Japan can emerge quickly from its worst recession since the Second World War.

The issue is likely to dominate the G7 summit in Tokyo, where finance ministers and central bankers will meet on Saturday to discuss prospects for the world economy.

"It's extremely important to cooperate towards stable foreign exchange rates and reduce the size of fluctuations," says Taichi Sakaiya, head of Japan's Economic Agency.

Last September, G7 ministers said they were "concerned" about the yen's strength and its effect on Japan's economy.

Wild ride for the yen

Since then, the yen has continued to strengthen and now stands at about 105 yen to the dollar - a massive revaluation since it reached 140 to the dollar just two years ago.

That has put pressure on big Japanese exporters like Sony and Toyota, who believe that they need an exchange rate of at least 110 to the dollar to remain profitable.

The Japanese government has spent around $70bn this year in trying to weaken the yen, and has said that it would be very worried if it dropped below 100 to the dollar.

But with central bank interest rates already near zero, it has few additional policy instruments to affect its currency.

US reluctance to help

But there may be real reluctance to offer help through the exchange rate.

US Treasury Secretary Lawrence Summers has said that he thinks both Japan and Europe should boost their growth rates through further efforts at economic reform to ease the burden on the United States

And with the US facing a record trade deficit in an election year, boosting Japanese exports to the US is unlikely to be high on the US policy agenda.

"I don't see any definitive agreement on currencies. I think that the even the Bank of Japan is more or less satisfied with the value of the yen as long as it is has stabilized at current levels," commented Akihiko Sato, who follows the economies of Asia for the Bank of Tokyo Mitsubishi.

Who's to head the IMF?

The meeting is also like to discuss who might be chosen to head the International Monetary Fund, the most important international institution that manages the global economy.

Existing head Michel Camdessus has said he wanted to step down by February, but there is little sign of an agreement on his replacement.

By tradition, the post goes to a European, but Germany's candidate, deputy finance minister Caio Koch-Weser, has generated little enthusiasm even among fellow EU members.

This time, Japan is promoting its own candidate for the job, Eisake Sakikabara, the former vice-minister for international finance who was called "Mr Yen" for his trenchant policy pronouncements.

Growth set to return

Outside of Japan, the rich countries' finance ministers have much to celebrate.

Their economies have been growing strongly, with Europe set to expand further in 2000, defying predictions that they would be seriously damaged by the world financial crisis.

But some parts of the developing world have been doing less well, and the ministers may discuss accelerating the debt relief initiative, a project close to the heart of the UK Chancellor, Gordon Brown.

The G7 countries include Canada, France, Germany, Italy, Japan, the US and the UK.