Aso warns against rapid rise in the yen

Currency is in general all about Supply and Demand.

So with the Japanese Government asking their National Companies to relocate back to Japan... you don't think that this would cause some extra purchase of Japanese Yen from another Currency ? (I really hope that this is the driving factor... that overseas operations are actually moving back here to Japan - a Country, which appears to be the most Stable within the region still...

Yen's going up. Short US Dollar - Japan can't afford to do anything about it... quite literally.

DHL takes longer to deliver a parcel in locally in mainland Europe than it takes to arrive from Japan to Europe!

Unbelievable...!

It’s more about the dollar weakening, and the yen being seen as more stable, I think. It is temporary, but good for those paid in yen with debt in dollars.

its strange, because...

But at the same time the yen has lost strength against the Euro, AUD, NZD, CAD and many other currencies! 

is true. want to send some JPY to AUD but the rate is going the other way for AUD....even though I keep reading about the yen getting stronger everyday! :(

Monetary policy has gotten Japan no where in the last three decades. This isn’t Chile where you can send a team of Friedman economists and fix Japan. Not saying Fiscal policy is the answer either. Tax and spend is equally ineffective.

The Japanese are good at turning a blind eye and I look for Japan to rely on the Chinese economy while overlooking Tibet, Hong Kong and even the Senkaku’s to climb out of recession.

However EMS/Japan Post have provided no explanation at all even though I am a business account holder with them. As someone mentioned DHL prices are unworkable unfortunately.

Though Japan post was privitised it is still run and operated like a government entity, they are in no rush to look for alternative means to ship products like teaming with the private courier companies to use empty spaces on their cargo planes.

The only shipping option to the U.S, Australia and many other countries is by sea. Shipping to most of Europe by EMS just resumed lst month.

The prices of the private courier companies especially DHL and FEDEX are astronomical. Shipping from the .U.S to Japan by DHL is way cheaper compared to Japan ti the U.S.

The yen is cheap, making Tokyo cheap compared to many cities in the US now.

A Strong Yen is what prevented the Japanese economy from a worse scenario: Hyperinflation.

However, if Japan and other countries jump on the devaluation bandwagon, they will get that short-term competitive advantage. That's what I think Aso is watching closely.

it happened in 2008 and its happening now even more in 2020, American is effectively printing $Trillion to support its economy , aka quantitative easing, if America doesn't want others to do it then they shouldn't be doing it themselves, quantitative easing is not illegal and almost every major currency is currently doing it during this recession. What's good for the gander is good for the goose anything else is just plain hypocrisy

it’s not so bad actually. Especially when we return home.

how does taking your Japanese money out of Japan and spending it overseas help Japan!?

However EMS/Japan Post have provided no explanation at all even though I am a business account holder with them. 

A rep at my local JP office explained it to me when the package intake to the US was first halted.

Desert Tortoise thankyou for that detailed explanation. I suspected that was the reason, lack of flights. However EMS/Japan Post have provided no explanation at all even though I am a business account holder with them. As someone mentioned DHL prices are unworkable unfortunately.

It's not UPS. They don't deliver EMS packages in the US. The US Postal Service does. Japan Post ships EMS packages on commercial passenger flights. 

I know, I didn’t say UPS, i said USPS (= United States Postal Service).

It's not really the case of the Yen getting stronger. The US dollar is falling against many currencies, including China. For Japanese companies who compete with Chinese / Korean makers it won't really make a big difference. However, if Japan and other countries jump on the devaluation bandwagon, they will get that short-term competitive advantage. That's what I think Aso is watching closely.

"A central bank's brief is to control inflation, which hasn't been a big problem for Japan, and support their currency in foreign trade. This is the primary mission of any central bank anywhere in the world. If a nation's currency appreciates in value relative to the currencies of its trading partners, it exports become more expensive. When that happens the citizens of the countries Japan trades with start to substitute away from Japanese goods to less expensive goods from somewhere else, hurting Japan's businesses in the process. Central bankers are paid a salary from their government so they don't make any more money one way or the other."

Readers please read carefully the above reply to an earlier post. Nothing could be further than the truth, simply that your in a dream that was at one time true, but not today. It is pure market manipulation and its always the consumers who end up paying the bulk and pensioners. No you can't give us that excuse anymore it just doesn't work especially when they openly and blatenlty spell it out for us, they are manipulating a one world currency to keep products no matter where you go into the hands of the super rich and they only get richer. That is the bottom line.

"That sucks, but I think that is a problem on the US side, not Japan’s. Japan Post has kept EMS and airmail service open to other countries, like Canada. I am pretty sure the USPS is the one jamming up the system."

It's not UPS. They don't deliver EMS packages in the US. The US Postal Service does. Japan Post ships EMS packages on commercial passenger flights. They load containers of packages for certain destination cities in the bellies of commercial airliners. That is generally how post offices around the world ship the mail, including packages. In the case of the US most flights are suspended until the US gets it's act together. As a result Japan Post doesn't have the flights on which to ship its EMS packages. UPS, FedEx, DHL and a few others fly dedicated cargo aircraft but you pay for that level of service.

"Especially when we return home"

And a lot are gonna return home....

Yen has become stronger against the US dollar by a very slim margin over the past few weeks. But at the same time the yen has lost strength against the Euro, AUD, NZD, CAD and many other currencies! As soon as the yen hit around 105 yen to 1 USD there seems to be so much panic which is baseless! I remember back in 2012 when 70 - 75 yen bought a US dollar and the economy of Japan was as strong as ever! The power of currency plays a role in the economy but not as strongly as these bureaucratic and financial goons want the local people to believe.

Aso said exports accounted for less than 20% of Japan's economy, shrugging off any immediate impact from the yen's rise but the fact that he warned against the currency's gains underscored authorities' struggle to boost external demand.

Domestic Demand in Japan

Give that domestic demand a few numbers....

https://www.focus-economics.com/country-indicator/japan/domestic-demand

There is no room for complacency

Its money printin' time!

TokyoJoe & Desert Tortoise yes its painful with out the low cost service of EMS running and having to rely on DHL who have loaded in a fuel surcharge, a virus fee and various other dubious charges to scalp during this pandemic, they should be held to account, isn't it called gouging?

The rising strength of the JYen against the USD is certainly not because of Japan, whose economy is such that the JYen should be depreciating. It's entirely on the USD side, the COVID19 situation, the economy and outlook. Unfortunately I fear the strong yen situation will continue (I can see JY100=USD1.00 on the far horizon already) until the US economy recovers, which would require a new Administration without a total idiot in the White House, and a handle of controlling COVID19. After November let's all MAGA.

And thank you Aso Taro, for your usual insightful statement. Are you thinking of doing anything? Something totally drastic like maybe devaluing the JYen??

As Aso said, exports make up less than 20% of Japan’s GDP so the country’s economy is not export-led. The stronger yen means cheaper oil and natural gas imports, resulting in lower electricity and gas bills. So what are they making all the fuss about?

This is an extra kick to my business that is already on life support due to EMS cancelling all exporting to US for the last 4 months. Oh well at least I have my Abe money, oh wait, no that didn't arrive yet either.

That sucks, but I think that is a problem on the US side, not Japan’s. Japan Post has kept EMS and airmail service open to other countries, like Canada. I am pretty sure the USPS is the one jamming up the system.

"This is an extra kick to my business that is already on life support due to EMS cancelling all exporting to US for the last 4 months. Oh well at least I have my Abe money, oh wait, no that didn't arrive yet either."

Do you sell on Buyee or Jauce? I like to buy stuff from Japan using those two e-commerce sites but with no EMS service I'm stuck using DHL and boy is that expensive!

""close watch" means openly admitting market manipulation by the banks. The only watch happening is their own pockets."

A central bank's brief is to control inflation, which hasn't been a big problem for Japan, and support their currency in foreign trade. This is the primary mission of any central bank anywhere in the world. If a nation's currency appreciates in value relative to the currencies of its trading partners, it exports become more expensive. When that happens the citizens of the countries Japan trades with start to substitute away from Japanese goods to less expensive goods from somewhere else, hurting Japan's businesses in the process. Central bankers are paid a salary from their government so they don't make any more money one way or the other.

"warns" who?

Snouts in the trough?

The Japanese economy is in recession but the US is in a darker place.

The dollar is weakening against the yen and the yen against gold.

Anyone not in possession of the hundred thousand yen should make an application before the 18th of this month otherwise the right to claim will disappear.

This is an extra kick to my business that is already on life support due to EMS cancelling all exporting to US for the last 4 months. Oh well at least I have my Abe money, oh wait, no that didn't arrive yet either.

"warns" who?

The dollar is weak because they're giving out free money to everyone and planning to do it again. Trump is killing the dollar. Governments forcing people to stay home and shutting down businesses will end up killing more people than the virus in the long run.

"The government and the Bank of Japan will keep a close watch on underlying market and economic trends and tackle as one as needed," Kenji Okamura, vice finance minister for international affairs, told reporters after a routine meeting with officials from the central bank and the Financial Services Agency."

"close watch" means openly admitting market manipulation by the banks. The only watch happening is their own pockets.

I can hear the money printers revving up. Hopefully the new cash comes in form of another handout to the people who will have to live with this inflation, instead of being put into ridiculous schemes like Abenomask, GoTo Travel, paying host/hostess bars to close, etc.