21 sats \ 2 replies \ @siggy47 26 Oct 2023 \ parent \ on: Why the US Dollar is Surging Against the Japanese Yen bitcoin
Given the economy's reliance on exports, Japan has historically focused on arresting sharp yen rises and taken a hands-off approach to yen weakness, which is more difficult because yen-buying requires Japan to draw on limited foreign reserves.
Some like John Vail, chief global strategist at Nikko Asset Management, say currency weakness is crucial for Japan's economy to maintain its competitiveness as a secure source of supply-chain diversification.
The above quotes were taken from this article: https://www.reuters.com/markets/europe/what-are-consequences-yens-fall-20-year-low-2022-06-10/
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33 sats \ 1 reply \ @supertestnet OP 26 Oct 2023
Good find. Interesting that last year they were already questioning whether Japan has enough foreign assets to intervene effectively in the fall of the yen.
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0 sats \ 0 replies \ @siggy47 26 Oct 2023
I have great difficulty wrapping my head around Japan. I try to get a handle on it, but it's a deep rabbit hole. It's amazing to me that the economy is still afloat. But, from what I read, it's unravelling now.
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