Japan’s Yamamoto: A weak yen is beneficial for the economy, boosts competitiveness

Dhwani Mehta FXStreet

“A weak yen is beneficial for the economy, as it boosts competitiveness,” Kozo Yamamoto, a senior member of new Prime Minister Fumio Kishida's government party, said on Thursday.

Additional quotes

“Govt must compile stimulus package worth at least 32 to 33 trillion yen and funded mostly by long-term JGBs.”

“Capital gains tax must eventually be raised, debate on details to take at least until fiscal 2023.”

“BOJ should aggressively buy JGBs to help fund big fiscal spending.”

“Must move swiftly towards issuing central bank digital currency to protect sovereignty over yen.”

“Issuing CBDC requires BOJ law revision, an opportunity to add job growth to BOJ mandate.”

“Weak yen is beneficial for the economy, boosts Japan’s global competitiveness.”

Market reaction

USD/JPY is hitting fresh highs on these comments, adding 0.25% on the day at 113.54, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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