The Japanese economy will feel the pinch of the depreciation of the yen if devaluation of the fiat currency goes on, said a Japanese expert in Tokyo on Tuesday. Kato Izuru, president of the Tokyo-based Totan Research, has followed the Japanese financial market and noted that the interest margin between Japan and the United States has not changed, and the Bank of Japan and the Japanese government actually can do little in the foreign exchange market.
"Currently I don't think the Bank of Japan will simply raise interest rates further. There are many market participants. As the Japanese government has issued a large number of bonds, accounting for the largest proportion of the GDP among the developed countries, if the Bank of Japan raises interest rates, the pressure on the Japanese government to pay interests on its bonds will grow. Under this condition, the extent for the Bank of Japan to raise interest rates is rather limited. Suppose the Japanese government intervenes by buying yen and selling U.S. dollars, it will increase inflation pressure in the United States to some extent, although the impact may be very limited. Yet it will still make a certain impact in terms of orientation. The United States will not accept such a policy," he said in an interview with China Central Television (CCTV) in Tokyo on Tuesday.
The expert believes that if the yen weakens further, Japan's domestic market is likely to experience another price surge this fall, which will impact the Japanese people's livelihood.
According to data released by Teikoku Databank, a large private survey agency in Japan, the rate of price increase averaged 31 percent for food products that are set to be more expensive in May, the highest since the survey started in April 2022. Higher import costs incurred by the depreciation of the yen are also a main factor to drive it up.
"Now many Japanese people are very anxious about rising prices of food, electricity and fuel coupled with the yen depreciation. The Bank of Japan has been saying there will not be price rising waves like last year, but if the yen exchange rate sagging to around 160 sustains, sharp price rises are expected in autumn," he said.
The expert holds that the current shortage of manpower may further be exacerbated by the depreciation of the yen.
The Japanese yen briefly dropped to a new 34-year low in the 160 level against the U.S. dollar on foreign exchange markets on Monday morning.
It marked the first time since April 1990 that the U.S. dollar has topped the 160 yen line. Monday is a national holiday in Japan, but trading remained very volatile as the Japanese currency began reversing its trajectory in the afternoon, strengthening to the 155 level.
Japanese economy to bear brunt of yen depreciation: expert
Japanese economy to bear brunt of yen depreciation: expert
Chinese President Xi Jinping held a restrictive meeting with Russian President Vladimir Putin on Thursday at Zhongnanhai in Beijing, during which they had in-depth exchanges on strategic issues of common concern.
The world is undergoing changes unseen in a century and entering a new period of turbulence and transformation, Xi noted, adding that in the face of the ever-evolving world landscape with volatility and turmoil, China has maintained its strategic resolve.
He said that under the leadership of the Communist Party of China, the Chinese people have overcome various difficulties and challenges, and are striving to promote high-quality development and Chinese modernization.
China is willing to work with Russia and other countries to enhance solidarity and cooperation, steer global governance in the right direction, jointly safeguard international fairness and justice, and promote world peace and common development, Xi said.
Noting that China's development is unstoppable and that no force can contain China's growth and progress, Putin said that Russia is willing to improve cooperation with China and other Global South countries to promote international fairness and justice, and to work toward a more equal and multipolar world.
The two heads of state had an in-depth exchange of views on the Ukraine crisis.
Xi elaborated on China's consistent position and efforts to promote the political settlement of the Ukraine issue, stressing that to deal with any major issue, it is necessary to address both the symptoms and the root causes, and to plan for the present as well as for the long term.
He said the core of the Global Security Initiative is advocating the vision of common, comprehensive, cooperative and sustainable security, and the fundamental solution to the Ukraine issue is to promote the establishment of a new balanced, effective and sustainable security architecture.
Xi said China supports the convening of an international peace conference recognized by Russia and Ukraine at an appropriate time with equal participation and fair discussion of all options, so as to push for an early political settlement of the Ukraine issue, and China stands ready to continue to play a constructive role in this regard.
Putin introduced the relevant views and positions of Russia, saying that Russia appreciates China's objective, just and balanced position on the Ukraine issue and welcomes China to continue to play an important and constructive role in the political settlement of the issue. Russia is committed to resolving the Ukraine issue through political negotiations and is willing to demonstrate sincerity and maintain close communication with China in this regard, he said.
Xi said that over the years, they have had many meetings and every exchange has been candid, in-depth and fruitful.
Xi said he is ready to stay in close contact with President Putin and work together to steer the development of China-Russia relations in the right direction, guide the China-Russia comprehensive strategic partnership of coordination for the new era to achieve steady and lasting progress, bring more benefits to the two peoples, and contribute to world security and stability.
Putin thanked Xi for his warm hospitality, saying that he is willing to maintain close communication with Xi, implement the important consensus reached between them, and ensure the full development of the Russia-China comprehensive strategic partnership of coordination for the new era.
Xi holds restrictive meeting with Putin at Zhongnanhai
Xi holds restrictive meeting with Putin at Zhongnanhai
Xi holds restrictive meeting with Putin at Zhongnanhai
