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HOME Knowledge Insight Publications Capital Markets & IT - lakyara Capital Markets & IT -lakyara List Capital Markets & IT - lakyara February 2024 Yen exchange rate movements’ impact on Japanese economy

Yen exchange rate movements’ impact on Japanese economy

Feb. 13, 2024

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Back when Japanese companies sold their products overseas by predominantly exporting from Japan, yen depreciation was beneficial to Japan’s real economy. With so many Japanese companies now operating overseas through local subsidiaries, yen depreciation’s positive economic ripple effects are almost exclusively confined to the inbound tourism channel. For the real economy as a whole, yen depreciation’s benefits are outweighed by the drawback of import price inflation.

About the Author

  • Masaya Sasaki

    Expert Economist

    Strategy Planning Department

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