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By Leika Kihara
TOKYO, Jan 19 (Reuters) - The yen may weaken against the dollar later this year on expectations of a U.S. interest rate hike, which would be positive for Japan's export-reliant economy, a former senior Bank of Japan official said.
Eiji Hirano, who used to attend Group of Seven meetings during his career at the BOJ, also said the G7 nations don't necessarily need to issue joint communiques every time they meet.
"Communiques have served as a way for member states to confirm what the group has agreed upon," Hirano said.
"But they don't have to be issued each time G7 or G20 members meet. As have been in the past, they can always issue emergency statements if markets destabilise," he told Reuters in an interview on Tuesday.
G7 finance leaders will gather in the Arctic town of Iqaluit on Feb. 5-6 to discuss any policy changes needed in accordance to developments in the global economy.
There will be no final communique issued from the meeting, which marks a return to the G7's roots as an informal forum to solve the pressing economic problems of the day.
Hirano, who was assistant governor at the BOJ until 2006, said the yen may weaken against the dollar later this year as receding pessimism over the U.S. economy heightens expectations of an interest rate hike by the Federal Reserve.
"Japan is still very much reliant on overseas demand. A weak yen, or a reversal of yen strengthening, is therefore positive for the economy," Hirano said.
The G7 comprises Britain, Canada, France, Germany, Italy, Japan and the United States.
Hirano, who was close ties with central bankers across the globe including BOJ officials, is now executive vice president of Toyota Financial Services, a financial arm of Toyota Motor Corp. (Additional reporting by Yuko Yoshikawa; Editing by David Dolan)