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© 2022 AFPJapan says it is ready to take action as yen dives
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© 2022 AFP
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Asiaman7
“This time, we’re really really really going to take action.”
Didn’t Japanese Finance Minister Shunichi Suzuki warn of ‘taking action’ one week ago!
ian
A week ago?
Then if they implement next week that would be really fast
sakurasuki
What action is that, to dive deeper and crossing 145 level?
https://www.bloomberg.com/news/articles/2022-09-08/yen-extends-decline-as-traders-eye-145-level-and-1998-lows
CrashTestDummy
This is where I don't understand the Japanese government policies and economic policies. Japan blocks foreign tourism to Japan which would roughly dump 45 billion USD into Japan's economy. Also, with the yen very low, not only tourist money, but other business money would flow into Japan. I don't think Japan is not strategizing with the low yen. One of China's economic business strategies is to do exactly that, keep their yuan super low to accelerate business investment in manufacturing and tourism. However, their zero COVID has put a damper on foreign business investment, but I think there are lots of ulterior motives behind the CCP's zero COVID policies and it is not COVID.
dmhondz
So the ministers held a meeting and came up with the decision that they will announce that they are ready to take action? Thats it? What is the plan? When? How?
Let me guess, they will schedule another meeting next month?
kibousha
No one believe what the BOJ says.
Increasing rate would mean, those who took variable rate housing loans would suffer, other loans as well, which country has the most debt to GDP ? Japan! Stocks would plummet, nenkin payment would plummet, and so on.
It's better to keep Toyota's profit reach record to keep the appearance that Japanese economy is "good".
GuruMick
Japan to take "various measures " to bolster the Yen .
Why so obtuse?
Voodoo economics meets the dance of the 7 veils
Mr Kipling
No really, this time they are ready to take action..... another meeting has already be scheduled...
Aly Rustom
take action- they are going to discuss scheduling another meeting in which they have to decide the various options to discuss to combat inflation and then discuss when to implement them...
Don't hold your breath.
The LDP has proven time and time again that whenever there is a crisis they are a deer caught in headlights
nandakandamanda
So what’s the news? The Bank of Japan is always ready to take action.
Chabbawanga
I heard that after Gandalf retired, the Japanese central bank took over as the ultimate master of magic.
egads man!
Late to the party again, J gov.
antifun
It's not fluctuating, it's just falling. I guess that means there won't be a "necessary response".
Antiquesaving
It is interesting to see what it will do, but Japan has a large foreign monetary reserve and now could use that to purchase back a good share of the Japanese bonds that are in yen from foreign powers.
Now Japan has been buying up Japanese bonds on a large scale since at least June.
So think about it, they can exchange their USA currency reserves for yen and buy back between 20% and 25% more yen bonds today for the same amount of dollars as in March.
The problem now is Foreign powers are now also buying up Japanese yen bonds as the yen plummets.
Peter Neil
No better time than now to sell US T-Bills and use it to pay for oil, since it has to bought with USD. High USD means cheaper price.
Japan has more than $1.2 trillion of T-Bills, the largest foreign holder of them.
Seigi
Word(s) of the decade for Japan is "relief package"... That's how Japan's economy survives.
Hermitage Nads
lol, yeah, like they are really going to take any action other than jawboning. The devaluation of the yen is an intended effect of the BOJ's monetary policy led by Abe's crony Kuroda.
kurisupisu
Even the UK pound is gaining against the yen.
That shows how weak the yen is becoming…,
tora
Gideon Gono would be proud of Suzuki. "Intervention" in this case means more QE.
200 to the dollar by Xmas. And then it's in the hands of the gods.
Namorada
Pretty sure that most people could stomach a falling yen and rising prices if salaries actually moved in a positive direction allowing consumers to drive the economy through increased demand. Instead, they’re pushing the shrinking number of 25-65 year old consumers to tighten their belts at a time when they’d otherwise would be spending if they could count on wage increases.
CaptDingleheimer
... and I'm 'ready for action' with my credit card when we visit Japan from the US next week!
Roten
And I am ready to spend spend spend if I can come back to Japan as a tourist without any restrictions as to where I go and where I stay. I can't stand making hotel reservations before I get to Japan (well, I often make first night in Japan and last night before flying out of Japan) because I want to have freedom to decide where to go based on the weather and on what my friends are doing. Around 145 yen to a dollar? Tourist nirvana. Hope it lasts until at least the COVID travel restrictions are lifted.
fxgai
What the government ought do, is what it should have done 2 decades ago - stop spending money it doesn’t have.
The BOJ is having its leaders appointed by the politicians who want to keep spending money they don’t have, though. Even if Kuroda is gone they will appoint a likeminded lackey in his place.
And with all that debt accumulating, there is little chance of the BOJ opting to stop bankrolling the government spending, and thus the yen is likely to continue its plunge.
There is no chance the government will acknowledge the true causes of Japan’s troubles, and so expect the troubles to continue.
Hopefully many residents of Japan have taken their chances to evacuate their resources offshore to the extent possible, so as to minimize the impact. But for many that will not have been possible.
rainyday
Please do something about it. I’d like to be able to afford to actually buy stuff next time I visit my home country. Assuming I can even afford the airfare.
GillislowTier
Other countries quickly and smartly decided that taking the economic hit on the chin asap and catching the rebound ya few months down the line was the best plan. Everyone saw each other doing it and most braced themselves as best as possible.
Japans BoJ just sat there and said “well taking action too quick will be bad, we will wait and see… like the last 40 years” and boom they are trying to act like this couldn’t have been prevented and prepared for. Literally had other countries asking what their plan was directly and got a big “wow no plan is a really bad plan” reaction. Japan once again did their economic downturns to themselves and can’t blame the situation around the world this time
Rakuraku
Fligthts to Europe are twice what they used to be pre Covid.
I also noticed than the price of Bluberries (imported from Canada) that I eat was just raised by 31 %! They are still cheaper than domestic ones though!
This time the situation seems clearly out of control.
Septim Dynasty
Ready to sell Japan to the highest foreign bidders by destroying the Yen.
Mohan
Bring in some younger actors who can really take action.
Yen has already depreciated to the level when these old actors have joined their offices.
quercetum
They can’t strengthen the yen by raising interest rates. Raising rate would lower the book value of the existing bonds. Spending was 263% over the GDP (budget deficit) No 1 in the world. What would you do?
kaimycahl
LOL they already took action by having a meeting!!! Nothing happened so they planned another meeting to have another meeting. Now the sky is falling!
shogun36
fluctuate? To what?
150? 200? Is there a magic number you fools are waiting for?
they’re ready? How? They have no clue what to do.
they’re too busy embezzling money the the unified church, first of all.
And on top of that they still have no idea how to get tourists back in the country.
who’s running this mess of a show?
smithinjapan
Yeah... ready to start bailing water on a sunken submarine. It's always over the ship has sunk that they think about starting to find ways to prevent it from taking on more water. It's worse than the sinking island in Erik the Viking.
And let me guess what the "action" would be... more panels to discuss taking actions.