Azumi says yen's strength not economically justified

Everything up in the air !

Just think how much cheaper a glass of whine is in Japan nowadays....

I'm sure that as the new finance minister he has to say things like this, but it does sound a bit like a spoiled kid saying everybody is picking on him and it's not fair! I know that Japan is an exporting country, but at the same time, with the high yen, are they not able to import things at a much cheaper price, such as raw materials etc. and wouldn't this offset some of the problems causes by the high yen?

I would never take a U.S. dollar and exchange it for a mere 76 yen.

It is only strong against the dollar, and that is quite wrong.

Azumi should know there is NO link between strong yen to GDP growth. Actually Japanese GDP growth has been declining while Yen has been stronger and appreciating too much too fast.

We are in global currency war while China still refuses to adopt a currency floating system while US printing more money.

Unless Japan takes an active role in the next G7 meeting pressuring China to go to a currency floating system, China will continue selling $$ and buying Yen. China wants Japan to lose a competitive edge and go to bankraptcy. China is exporting unemployment to US and Japan. China needs to play a fair game in global economy.

JapanGal - I think you'll find it's pretty strong against Sterling too. If you look at historical graphs going back either 5, 10 or 20 years you'll see the rates that it was compared to what it's gone to over the past few years.

"yen's strength not economically justified" what does he know! He has zero experience in the markets, so you know he can only f--k things up.

Time for talking about is well passed actionis needed to get the yen to realistic levels.

Also reducing corporate taxes is a small step in the right direction but again time to do it and not just talk about it.

He is correct. However, there isn't much Japan can do to defend itself from the rest of the world's banks, hedge funds and sovereign wealth funds.

Because it is a floating rate, it is by definition economically justified.

He is correct. However, there isn't much Japan can do to defend itself from the rest of the world's banks, hedge funds and sovereign wealth funds.

The fact is "the rest of the world's banks, hedge funds and sovereign wealth funds" are not the reason the Japanese yen is so strong. Unless you believe in conspiracy theories.

"The fact is "the rest of the world's banks, hedge funds and sovereign wealth funds" are not the reason the Japanese yen is so strong. Unless you believe in conspiracy theories."

2020: There is no suggestion of "conspriracy". Who else is buying yen? Japanese housewives?

"Just think how much cheaper a glass of whine is in Japan nowadays...."

kansaifun, actually nothing imported gets cheaper! I thought high yen is good especially if you travel abroad, but the flights are more expensive than ever, etc., etc.

I am for weak yen with both hands!

There is lots japan can do about the strenght of its currency but as usual they dither and dally untill its too late.

How about instead of forming a consensus on what everyone already knows he actually try to do something to fix the problem? But I suppose asking a Japanese politician to actually DO something instead of just taking polls and forming panels to discuss something is like asking a three-toed sloth to run a marathon (except even THAT would be faster action than a Japanese politician!).

too little too late...still

Now the PM is a former finance minister who let the yen strengthen and didn't do anything worth while to weaken it. And now he is in charge of all of Japan Inc.

As far as Azumi goes, how does cutting corporate taxes make companies want to stay in Japan when production overseas is cheaper and has a real impact on the bottom line? Those who will benefit will NOT be in manufacturing.

The Chinese are making the yen higher then it should be, I dont even know why we let them in to the WTO, they are a tyrannical government and use their economy like a weapon. They are buying loads of Yen and selling their dollars while artificially pegging their currency to the dollar, maybe Japan should play by China's rules for a change?

Manufactures save money on plants overseas exactly because of the excessive taxes.

Of course it doesn't make sense that the yen is strong... but that's how the FX market works. People sold off the yen after the earthquake, and somebody had to be there to buy it! Hence the price went up.

How about instead of forming a consensus on what everyone already knows he actually try to do something to fix the problem?

And what would you suggest he do?

They should compare big Mac prices as they have done in the past.

Would it help to print some money to pay off the foreign debt with this? If it is used exclusively to reduce foreign debt, the inflationary effects on the inland should be limited. When creditors transfer the funds home, it will help to reduce the yen's exchange rate. If creditors decide to invest the money in other places in Japan, it will help to give a boost to the Japanese economy. It would kill two birds with one stone. Any other side effects?

There is no suggestion of "conspriracy". Who else is buying yen? Japanese housewives?

paulinausa, China has been in massive buying Yen. I mean MASSIVE.

Of course it is justified!

Japan has typhoons,earthquakes,floods and nuclear disasters all of which take massive amounts of money to put right.Also, Japan is suffering from deflation,a tight monetary policy and still has a huge modern economy.

So, of course the yen is strong-why wouldn't it be ?

If the yen is to be weakened start printing more of the stuff like the US of A does.

Print more money and give it away to people on the streets going to work.