November 27, 2022, 16:16

Japan Spends Record $43Bln to Prop Up National  Currency in October, Reports Say – 31.10.2022, Sputnik International

Japan Spends Record $43Bln to Prop Up National Currency in October, Reports Say – 31.10.2022, Sputnik International

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MOSCOW (Sputnik) – The Japanese government spent a record 6.35 trillion yen ($43 billion) on more monetary interventions in October to support the national currency yen which continues to lose value, Japanese media reported on Monday. citing the finance ministry data.On September 22, the Japanese government spent 2.84 trillion yen to buy the national currency — for the first time since 1998 — as it fell to 145-1 against US dollar. The yen briefly recovered to 140-1 but fell again to 145-1 within days.The Japanese government never declared that it made the interventions nor disclosed the number of interventions since then.The Kyodo news agency reported, citing sources, that there were likely at least two “stealth” interventions on October 21 and October 24, evident from brief episodes of growth for the yen.A weak yen is considered a boon for Japanese exporters, whose overseas profits are increasing in yen terms, the agency reported. However, Japan, with limited resources, was seriously affected by the sharp fall of the yen, which led to an increase in prices for imported energy and food.Japan has been facing an increase in prices for 13 months in a row, due to the Japanese yen’s record low exchange rate. The situation significantly worsened after Western countries imposed sanctions on Russia over its special military operation in Ukraine, which triggered an unprecedented growth in prices for energy resources, which Tokyo must import in great quantities.

Sourse: sputniknews.com

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