One thing that foreign tourists love about Japan at the moment is the weak yen. And why not? The yen has been around the 150 yen/dollar ratio for quite some time. It certainly benefits overseas travelers, especially those from the U.S., who make money when they convert their cash to yen.
But what about the folks who earn their living in yen? Well, for them it’s a different story. If they have to travel overseas, they lose money in the transaction. Moreover, the currency’s buying power at home loses its steam. It’s just not a good situation to be in.
But don’t look to the Japanese government for help. Weakening the yen has been its priority since Prime Minister Abe was in power. Abe’s successors have only kept his policy in place.
The yen should be much more competitive with the dollar. There’s no reason for it to be as weak as it is against the dollar. Even though it won’t, the government should step in to fix this issue. Otherwise, Japan’s currency will be reduced to that of a third world country.
Brett