A weak yen has disadvantages Finance Ministry Vice-Minister Mimura says a weak yen has “noticeable disadvantages” and will make a comprehensive judgment on currency intervention．
Jun Mimura, the Finance Ministry’s new head of the international department on the 31st, expressed the view that the current weak yen has more negative effects than positive effects, such as pushing up import prices and affecting people’s lives. He gave an exclusive interview to Bloomberg on the 29th. Finance Ministry official Mimura said that exchange rates “have both advantages and disadvantages, whether the yen is strong or weak,” but pointed out that the recent weakening of the yen has led to higher energy and food prices, making “the disadvantages a bit more noticeable.” He said that because many people feel the disadvantages of a weak yen, “exchange rate issues have become a concern for many people,” and that as Finance Minister he will respond while keeping the current situation in mind. Regarding currency intervention, the Bank of Japan stated that it is a necessary measure when market prices deviate significantly from fundamentals, including speculative movements that could have a negative impact on the Japanese economy, but that the decision to implement it will be made “from a multifaceted, comprehensive perspective.” He declined to comment on exchange rates or future prospects. Vice-ministerial-level officials of the Ministry of Finance are key members who attend international conferences such as the G7 and G20, along with the Minister of Finance and the Governor of the Bank of Japan. They are also known as the “currency mafia” because they exchange highly confidential information with various countries, and their statements attract attention, especially when market prices fluctuate greatly. His predecessor, Kanda Masato, frequently used the media to warn the market during the period of historic yen depreciation. The market is paying close attention to Mimura’s style of information dissemination. Regarding dialogue with the market regarding currency intervention, Finance Ministry official Mimura said, “Communication is not just about telling the truth.” It is believed that a strategy of not revealing whether or not a move will be implemented and deliberately creating doubt in the market can sometimes be effective. In fact, when the first yen-buying intervention in 24 years took place in September 2022, Kanda and other monetary authorities immediately revealed that they would intervene, but maintained a “no comment” stance on whether or not they would intervene thereafter. Mimura emphasized that because Japan’s currency intervention records are regularly published on a monthly and daily basis, “we have ultimate transparency that is comparable to that of other authorities around the world.” He also indicated that he would respond flexibly in his dialogue with the market. On the morning of the 31st, the yen briefly traded at 152.43 yen per dollar on the Tokyo foreign exchange market, up sharply from the 155 yen range of the previous evening. The market reacted to Mimura’s recognition that the current weak yen has significant disadvantages. Reports that the Bank of Japan would consider further interest rate hikes at its monetary policy meeting on the same day also contributed to buying of the yen. One of the most important duties of a finance official is to foster international cooperation in the fields of economy and finance in a rapidly changing international society. The US presidential election is coming up in November, and depending on the outcome, it is expected that this will have an impact on the stage for international cooperation. In the past, G20 finance ministers and central bank governors have met without being able to adopt a joint statement, highlighting the difficulty of reaching consensus among diverse players. Although some have pointed out that the G20 is dysfunctional, Mimura argues that such international conferences still have meaning. “International cooperation is not just about sharing ideas and working together in harmony. “There is meaning in the mere act of coming together, including countries with different views, to discuss each other’s positions, and a channel for sharing information is extremely important.” Finance Minister Mimura also cited economic security as one of his key policies. He described notifications and reports based on the Foreign Exchange and Foreign Trade Act (FX Act) as a “treasure trove of huge data,” and expressed his intention to use analysis of the data to improve Japan’s economic intelligence. Mimura graduated from the Faculty of Law at the University of Tokyo in 1989 and joined the former Ministry of Finance. In addition to his positions at the Financial Services Agency and the Bank for International Settlements (BIS), he served as Chief of the Documents Division at the Ministry of Finance, which was responsible for dealings with the Diet, and became Director-General of the International Bureau in 2021. Finance Officer Atsushi Mimura.
>>1 January 2020: COVID-19 pandemic begins September 2020: Prime Minister Abe resigns (1 dollar is around 106 yen) Mr. Abe, it has nothing to do with the weak yen, lol The ones criticizing the weak yen are the ones who want to denigrate Mr. Abe lol In the first place, there are no Japanese people in Japan who receive their salary or pension in dollars, right? Japan is currently experiencing an unprecedented economic boom (clear if you look at the Nikkei average), so it doesn’t matter how much 1 dollar is, does it?
The financial cycle makes it clear! Jim Rogers talks about “the tragedy that will happen in Japan from now on” 2015/02/05 8:30 Prime Minister Shinzo Abe will be killed by the last arrow he shot, which will pierce his own back and go down in history as the man who brought Japan to bankruptcy. Devaluing one’s own currency seems like madness to me. The yen has fallen by 45-50% in recent years, which is unusual for a developed country’s currency. When this happens, nations collapse and sometimes even lead to war.
>>7 The Ministry of Finance is stupid and all they can think about is Japan’s decline There are no bureaucrats in the Ministry of Finance who have any economic knowledge So every time they raise taxes, tax revenues go down and they make ignorant idiot politicians raise taxes even more, and they’re the only ones who are happy and getting promoted.
I hate it. Idiots who have never invested are hostile towards a weak yen, just like idiots who know nothing of history talking about war. It’s because of idiots like this that Japan has been in deflation for 30 years. Japan will fall because a piece of shit like the Ministry of Finance is at the top of Japan.
The only people who say that a weak yen is a disadvantage are foreigners and the Ministry of Finance, because the ones who are in trouble when the yen weakens and the Japanese economy booms are foreigners and the Ministry of Finance bureaucrats.
I think it would be fine for them if stock prices just went up like yours.
0023Anonymous donburako rolling around.Jul. 31, 2024 (Wed) 11:31:09.71ID:VKQj8WJ50(1/4)
The weak yen is a long-awaited development for Japanese manufacturing, but the Ministry of Finance and Keidanren are economically ignorant. Japanese trading companies are also profiting from the weak yen, but the Ministry of Finance and Keidanren are economically ignorant.
When the yen weakens, Japanese products and products made in Japan become bargains overseas. The international competitiveness of Korea and China declines relatively. This is an easy-to-understand diagram. Tourism is a good example: people who used to go to Shanghai, Hong Kong, or Seoul go to Tokyo, Kyoto, or Osaka.
If they were to intervene at the same time as today’s interest rate hike, the yen would likely appreciate sharply, but I don’t think they’ll go that far.
>>32 They’ve already shifted to non-manufacturing, so there’s no chance of a revival. The materials and parts that were once cash cows are now mostly sourced locally. Japanese companies are responding properly to globalization, but the politicians, including bureaucrats, who still dream of manufacturing are just stupid.
>>32 The yen has weakened and exports are growing, but most media outlets don’t know this fact. It’s been reported that half of Taiwan’s jobs are being taken by Japan. So a weak yen is only beneficial for Japan, and the only drawback is for foreigners.
It’s just a few listed companies making money for themselves, and there are only disadvantages for the majority of Japanese people. And it’s not like those listed companies are giving any profits back to Japan.
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