It is reported that the yen, known as the "strong currency" in East Asia since the second half of this year, suddenly began to depreciate significantly, with a speed that far exceeded the outside world's expectations. Some sources said that the shrinking of the yen is due to many reasons, among which the biggest impact is the damage caused by the new crown pneumonia epidemic, the sudden supply of raw materials and energy after sanctions on Russia, and panic withdrawal of investment in the European and American markets. In September this year, after the US dollar broke 145 against the yen, the Japanese government intervened in foreign exchange for the first time in 24 years to use "official means" to regulate, but it still failed to curb the trend of depreciation.
news mentioned that after the yen encountered a crisis, the Federal Reserve continued to raise interest rates to stabilize their currency. This conspiracy caused the yen to continue to fall against the exchange rate against the US dollar and broke through the important psychological threshold of 150 this week. On the 21st, these two currencies reached the 151.90 yen mark for 1 US dollar, falling to the " economic crisis level" 32 years ago. What I didn't expect later was that the exchange rate of the yen suddenly rose by about 5 points in a short period of time, and rose rapidly from late at night on the 21st to 146.20 and appreciated back to September. The abnormal situation immediately attracted the attention of the outside world, and it was almost unanimous that the government had taken action.
Although the Japanese Ministry of Finance has not disclosed whether to intervene this time, such a large increase must have been the use of national measures. In addition, the Japanese Finance Minister had previously hinted that the Japanese government "cannot tolerate speculative and excessive foreign exchange fluctuations and will take appropriate actions to deal with excessive trends", which is undoubtedly a sign before the action. But the media believes that this kind of intervention method of relying on buying and selling is very clumsy. As long as they cannot solve the fundamental problem, the yen will of course depreciate again and again in the future. In other words, if the Ministry of Finance does not take practical actions to reform the economy, it will definitely trigger the selling momentum of the yen in the next few weeks.
So how to "solve the problem", the pressure comes to Kisha Fumio . After Russia and Japan "turned against each other", most of the cooperation was cut off, causing the Japanese government to have a domestic crisis like the West. Later, Kishida did not adjust its policy, but decided to coordinate the investment of more than 20 trillion yen (about 960 billion yuan) to cope with rising prices, subsidize energy and stimulate tourism. This kind of "money printing" method like an economic bubble directly caused the yen to depreciate significantly, but also caused a reputation crisis internationally. Countries sold the yen one after another, causing the "wall collapse effect" to become more and more serious. Therefore, Japanese media believe that excessive spending without reform is the main reason for this exchange rate crisis.
It is worth mentioning that even if the Japanese government wants to "reform", what methods do they have? Some people in economic analysis believe that Japan suffers from the same "disease" as Europe. It only needs to solve the energy and raw materials problems to greatly alleviate inflationary pressure. The government does not need to use these "spending money" measures to solve the urgent problem, and the yen will not fall so seriously. But the problem is that since following the West on the road of sanctions against Russia, Japan has no way to look back. Their current "Sakhalin Project" pipeline with the only energy connection with Russia is uncertain and they may be kicked out at any time. If this happens in the winter, the crisis will be even more serious. There is a comment on this: "In the Far East of , Japan, which was originally in the Far East of , there was no need to be an enemy of Russia. They could follow the Korean sanctions against Russia 'point to the point', which is in line with the route of the Abe period; now Kishida Fumio and Russia have completely turned against each other, and the price that Japan pays to completely get on the same boat with other members of G7 will be very high."
