earn-moneyearn-moneyForexcancer

2008年4月23日水曜日

What is the advantage to Japan in having a weak yen? -

Japanese yen has weakened to most major currencies in the past 5 years since living here. For example when I arrived 4 years ago, 100 yen was 73c (AUD). Yesterday, the Australian dollar is $1.01 to 100yen. Japan is still the second biggest economy why is the currency so weak? Or does the size of the economy not related to currency value?

The advantage of having a weak yen is. Countries such as UK and USA can import goods from Japan very cheap and easy since their value of their currency is high. Hence the economy activity in Japan will always be stable meaning their economy is very strong and rich. However when it comes to Japan importing will be very hard and expensive e.g oil. Because their value of the yen is low. so it will requirer them to use more money to import.

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