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Japan warns of impact of yen's rapid depreciation to 24-year low

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About time Suzuki issued a statement...he's been asleep at the wheel ever since he was appointed as Finance Minister. ..useless.

9 ( +21 / -12 )

This is starting to look like a dollar melt-up

-3 ( +5 / -8 )

the collapse has begun

3 ( +21 / -18 )

Pardon? After so many years of excessive printing it’s still an outstanding luck that it is generously rated at 140 and not 450 or so.

16 ( +26 / -10 )

The government is warning?

Yet, the BOJ and the government are the ones causing the weakness in the yen, obviously.

Time to retire the inept….

11 ( +28 / -17 )

Time to retire the inept….

and the incompetent and the corrupt.

11 ( +21 / -10 )

Weaker yen has been showing happy faces for OEMs and red faces for their suppliers, unfortunately.

Of course, if the border measures are eased, Japan can enjoy at least some extra benefits with more tourist spending.

12 ( +17 / -5 )

A weak yen is a single edged sword that cuts at the average person. Corporations increasing their exports does not trickle down.

17 ( +23 / -6 )

After so many years of excessive printing it’s still an outstanding luck that it is generously rated at 140 and not 450 or so.

Every printing press in every country is running hot. The question is can Japan take advantage of this competitive advantage after off-shoring so many factories, and with an aging workforce, and sclerotic management and government?

10 ( +12 / -2 )

As the great Connor McGregor says: "Well, do something about it then! Do something"!!!

All talks. They need to have 8654 meetings before coming to any decent conclusion

5 ( +13 / -8 )

I locked some savings into accounts paying over 3% (abroad)

The Japanese can’t even protect their savings as there aren’t any accounts in Japan paying anything like that.

Money is literally being stolen from the Japanese!

3 ( +22 / -19 )

It's all by design.

0 ( +11 / -11 )

@kurispisu,

2 awesome comments on this thread.

-8 ( +4 / -12 )

What goes down comes up.

5 ( +9 / -4 )

If your income is in JYen and your living expenses are also in JYen then the exchange rate has nothing to do with you, except of course for the cost of living rises due to more expensive imports. But increased cost of living is happening all over the world, first through Covid related supply chain disruptions and now the econimic effects of the Russian invasion of Ukraine. And these are countries whose currency has not depreciated against others, and their indlation rate is way higher than Japan.

This is far from the "end" of the Japanese economy. I've seen the USD/JYen exchange rates from 360 when I was a kid to 230-250 as a teenager and 150 just some 20 odd years ago. Rest assured that at some point in time the exchange rate will reverse again.

There are people making money taking advantage of the weak JYyen right now. Some are buying Real Estate. Others are just buying JYen to hold in order to sell when it reverses. There are ways to take advantage of this current situation. But spending your time posting and bashing Japan isn't one of them. Guaranteed.

7 ( +24 / -17 )

If your income is in JYen and your living expenses are also in JYen then the exchange rate has nothing to do with you, except of course for the cost of living rises due to more expensive imports

So basically everyone is impacted

9 ( +15 / -6 )

Japanese yen rate should be far less, the money is a tool for the USA.

-1 ( +6 / -7 )

@Ossanamerica

If your income is in JYen and your living expenses are also in JYen then the exchange rate has nothing to do with you, except of course for the cost of living rises due to more expensive imports. 

Pretty much everything is costing more while salaries are (at best) stuck or (at worst) tanking due to COVID, etc. So, all of us here in Japan (no clue where you live and frankly I don't care!) are impacted.

This is far from the "end" of the Japanese economy. I've seen the USD/JYen exchange rates from 360 when I was a kid to 230-250 as a teenager and 150 just some 20 odd years ago. Rest assured that at some point in time the exchange rate will reverse again.

How long ago was this? 40 years ago, 50, more? Households economics, national economics, regional economics and world economics changed beyond recognition over such a timespan. You are literally comparing 21st century with 20th century economics.

Dude, really...

1 ( +18 / -17 )

Buy gold, and silver if you want a kicker, be patient (can you?) Relax. Check again in 2030. You will hang on to your purchasing power. Tanaka Kinzoku, and Mitsubishi Materials Gold Park, are easy places to start. Or simply save in USD, just the cleanest shirt in the hamper. Or do nothing. Rates go up; they go down. Probably tangibles beat intangibles for the rest of the decade, but maybe not. How is that for conviction, lol?

-3 ( +3 / -6 )

Yen depreciation and inflation. This is serious bad news for the aging population.

6 ( +9 / -3 )

Thank goodness I went to Guam last week and not this week. 

Thank goodness!! You may have saved 2,000 yen!!

14 ( +16 / -2 )

Keep going, as a friend told me 150 yen / USD is about the right number, more profit for exporters, and higher cost for importers BUT they will pass it on and at the end it will all EVEN OUT.

-7 ( +3 / -10 )

they will pass it on and at the end it will all EVEN OUT.

They won't, and it won't.

4 ( +8 / -4 )

the collapse has begun

Only if debt is foreign.

Good thing Japan's debt is in JPY so this depreciation cannot cause any kind of collapse.

6 ( +7 / -1 )

Dump the US$ and conduct international trade in Chinese Yuan. Early adopters are going to make or save a lot of money.

-4 ( +3 / -7 )

This is the DIRECT result of Abenomics fueled by "Modern Monetary Theory".

6 ( +7 / -1 )

This is the DIRECT result of Abenomics fueled by "Modern Monetary Theory".

What would a genius such as you do? Raise interest rates 5% so GDP collapses by around 10%?

-9 ( +2 / -11 )

I have some money burning holes in my pockets waiting for independent travel bans to be lifted for those who are interested in visiting Japan again. Bring back the visa waiver program and unrestricted travel. 140 yen to the dollar? Yummy!

2 ( +3 / -1 )

Sell your YEN until you still can!

-8 ( +5 / -13 )

We have an agreement by the Group of Seven and others that excess volatility and disorderly movements in exchange rates can have an adverse impact on economic and financial stability,

I guess what they are suggesting is that all countries including the US should lower interest rates despite their high inflation because JPY needs to be stabilized. How about following the rest of G7 and raising interest rates if you prefer JPY to be stable? There's another way to induce inflation: Raise the minimum wage to 1500 JPY.

1 ( +4 / -3 )

Are they going to unleash the printers?

0 ( +3 / -3 )

the U.S. economy is firm

someone's in for a surprise

6 ( +6 / -0 )

Thank you for the warning, Japan. I was not aware of the impact of the weak yen.

-1 ( +2 / -3 )

Japan could be making a windfall with increased tourism due to the weakening yet but.....

3 ( +5 / -2 )

Not gonna lie…. This news depressed me. @blue I agree with everything you say. @OssanAmerican you’re probably rich, that’s why you can make such a nonchalant comment, like it’s nothing.

A commenter forecasted this in April. I specifically said, covert your yen to US. I wish I did then. Working in Japan is non longer attractive when you match your salary against the US.

3 ( +6 / -3 )

One fallout of the cheap yen to US dollar - US private equity firms are buying up Japanese real estate in huge numbers to rent out later to people. The goal is to get rid of home ownership and turn people into renters as part of the "Great Reset" and the devalued yen is accelerating this effort in Japan.

-1 ( +5 / -6 )

"What would a genius such as you do? Raise interest rates 5% so GDP collapses by around 10%?"

What nonsense.

What you fail to comprehend is the fact that the present situation is only made possible by "fiat" currency.

Save your ad hominem "logic".

-2 ( +3 / -5 )

I love how the Dollar is BIG compare yo YEN. It should always be that way.

-3 ( +1 / -4 )

Money is literally being stolen from the Japanese!

Nothing is being stolen from the Japanese. The Japanese make their own monetary policy.

-11 ( +2 / -13 )

Low inflation, even with the Russian energy squeeze + sanctions. Thumbs up.

Corporate profitability up. Thumbs up.

BoJ not beholden to Putin's political attack on the west, unlike USA which has no choice but to respond politically, but is cutting its own nose off economically. Thumbs up (for Japan).

Japan's divergence from the west is starting to look - prudent. Be happy you're not facing 9% self induced inflation, tanking house prices (your prized asset), and fixed income market not cooperating with the feds, ie not pricing in higher interest rate for long term bonds.

IMHO, put your money into Yen assets is looking like a safe bet.

-3 ( +2 / -5 )

It's not a weak yen, it's a strong dollar. Against other reserve currencies like the euro and sterling, the dollar is really strong.

Against other currencies, the yen is within the normal range.

4 ( +6 / -2 )

Bad for the general public. It sucks getting paid in yen at the moment if you have nay connections outside Japan.

6 ( +7 / -1 )

When u have low interest rates and when u print money to fund stimulus packages, u end up with a lot of cash in circulation and that depreciate the value of the yen. The unnecessary lockdowns has really destroyed the economies many countries and made many more bankrupt or insolvent. This is the aim of the few elites who pushes for the one world economy, one world govt.

-3 ( +1 / -4 )

A prominent Japanese economist/investor (Japan's Michael Burry) even predicted that Yen would end up at 500 Yen to 1 USD in the very near future. This scenario will likely be a conflict in Taiwan where China will retaliate economically against Japan and South Korea with a blockade. Japan and South Korea will end up worse than the EU currently.

Japan's structural weaknesses are beyond repairable now. Japan's only solution is to import wealthy Asians from China, India, and ASEAN to inject massive capital to revitalize the economy akin to the UK becoming a safe haven for wealthy "brown people" (South Asians and Middle Easterners) in past years. However, this is also a double-edged sword because Chinese, Vietnamese, Indians, and other Asians will likely create walled cities (concessions) to stimulate economic activities among themselves, while Japanese workers will be abused and ignored. This phenomenon has already begun in Hokkaido where Chinese-owned businesses cater to Chinese and other Asians but not Japanese locals.

Shinzo Abe's plan was to turn Japan into the next UK for rich Asians.

How long ago was this? 40 years ago, 50, more? Households economics, national economics, regional economics and world economics changed beyond recognition over such a timespan. You are literally comparing 21st century with 20th century economics.

Dude, really...

That's the best you can expect from Japan's LDP trolls around here. They clearly manipulate the votes on this site to downvote anyone with a slight criticism against Japan.

-7 ( +1 / -8 )

I find this strange 24 Years ??? After 2008 crash, the AUD was at one time $1.10 to USD $1.00. So was the Yen ever better then the USD $1 ???, So that would make the Yen lower then USD and the AUD. Like next week you will find the AUD go pass 100 Yen for $1 AUD. That will be the second time since the mid 80,s the first was post 2008. It do make sense 24 years. The bloke is only going at a time graph of 30 year comparing only the Yen and the USD to make that statement without looking at the overal international performance of the Yen.

-2 ( +0 / -2 )

It's not a weak yen, it's a strong dollar. Against other reserve currencies like the euro and sterling, the dollar is really strong.

But is it truly strong? Inflation at 9% means $100 today is worth $91 next year.

Japan (unlike China) has all its debt mostly in ¥ens, so regardless of what Powell does, Japan does not owe any more to creditors. ¥100 today is worth ¥98 next year.

China, Europe (with a lot of debt in USD) etc...on the other hand will owe more to creditors if they let their currencies fall behind the USD.

2 ( +2 / -0 )

It's not a weak yen, it's a strong dollar.

That surely also might be part of the truth. More generally speaking we are in a kind of war between the global blocks lead by global powers US and Russia. So all their followers collect and stand backing up in line behind them which also includes their currencies, which lets us see daily strong notations of Dollars and Roubles, not so much out of economical strength but out of their political leadership position.

0 ( +1 / -1 )

Whom is it warning?? It lowered the value itself, along with Kuroda.

-3 ( +1 / -4 )

Who’s fault is it that the yen is so low? The government and the boj and abe/kishida nomics. Take responsibility for your actions, money printing only makes the cost of living more expensive and difficult for lower income workers..

1 ( +2 / -1 )

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