According to Japanese media reports on October 8, due to the sharp depreciation of the yen in the foreign exchange market, the lives of many foreigners working in Japan are being affected. If they want to convert the salary they receive in Japanese yen to the domestic currency, it will shrink significantly.
reported that many people have reduced their remittances to their families who live abroad since about half a year ago, and have been asking their families to spend the money they remitted before the yen depreciates so much. Now, the salary of Japanese yen to Indian rupee will be reduced by about 35%, and the Malaysian ringgit is about 15%. In addition, according to real-time foreign exchange data, the exchange rate of RMB against the Japanese yen on October 9 was 1: 20.4251, which also fluctuated slightly compared with May this year.
Japan has always been known for its stable prices. However, due to the recent plunge in the yen, prices of various commodities in Japan have risen. Preliminary statistical results released by the Bank of Japan on April 12 showed that the Japanese corporate price index rose by 9.5% year-on-year in March, significantly higher than the previous value of 0.2%, which is also the year-on-year increase of the Japanese corporate price index for 13 consecutive months. According to Xinhua News Agency , the Bank of Japan expects the upward trend of corporate prices to continue, and Japan's inflation level may reach 2% after April.
In order to rectify the "restless decline" of the yen and boost national confidence, on September 22, the Japanese government finally couldn't help but interfere in the foreign exchange market, reenacting the scene in 1998.
It is not easy to start this "Yen Defense War". According to the Financial Times, the Japanese government spent nearly $20 billion on the intervention in September, and foreign exchange reserves fell by $54 billion to $1.24 trillion. The latest statement from the Japanese Ministry of Finance said that Japan's foreign exchange reserves fell month-on-month in September, the largest decline on record.
Fed consecutively cuts to sharply hit global currencies. Many countries predict that the bull market of the US dollar is still continuing, and the in-depth money-burning war has spread to more countries.
Standard Chartered Bank data last month showed that emerging markets in Asia (excluding China) were closely watched to measure the adequacy of foreign exchange reserves (i.e. how much imports a country can pay with its foreign exchange reserves) had fallen to about seven months, the lowest level since the 2008 global financial crisis.
data show that Malaysia and Indonesia's foreign exchange reserves fell to their lowest level in 2020 in September, while Thailand's foreign exchange reserves fell to their lowest level in five years. In the same month, South Korea's foreign exchange reserves saw the largest decline in nearly 14 years in September, with a single-month shrinkage of only in October 2008.
At the same time, according to the latest data of State Administration of Foreign Exchange on October 7, my country's foreign exchange reserves are still abundant. As of the end of September 2022, my country's foreign exchange reserves fell slightly to US$3029 billion, a slight decrease of 0.85% from August.
text | Chen Yueshan Title | Huang Zixin Review | Zeng Yi
