"There is no limit to what a man can do or where he can go if he doesn't mind who gets the credit." - President Ronald Reagan.

Buy The Amazon Kindle Store Ebook Edition

Buy The Amazon Kindle Store Ebook Edition
Get the ebook edition here! (Click image.)

Tuesday, October 23, 2012

Japan To Join Currency Wars?



There may finally be some action on the Japanese yen as Japan's exports have fallen into a slump.

Besides making vacations more expensive to foreigners due to the poor rate of exchange (currently, the U.S. dollar is trading at 79.86 yen per dollar), it is also choking Japan's exports.

News On Japan reports:


The yen has risen 30 percent against China's yuan, 65 percent against the euro, and 80 percent against Sterling since 2008. Tokyo is itching to fight back. 
Yen strength is Japan's curse. It rises on safe-haven flows during global downturns, choking the economy. This stems from Japan's bitter-sweet role as top creditor with $3 trillion of net assets.

If the Japanese devalues the yen on the foreign exchange, it will boost their exports (making them more affordable) and will give their tourism industry a shot-in-the-arm in giving foreign visitors more yen for their money.

To read the full article, go here.

No comments:

Search This Blog