DREAM / The Prime Minister resigns and wakes up under the Parisian bridge!

 Kliko këtu për të tjera
Voxpress:

Mystery: Why is the United States bailing out the Japanese yen?

2026-08-03 20:01:16Kosova&Bota SHKRUAR NGA REDAKSIA VOX

Mystery: Why is the United States bailing out the Japanese yen?

For the first time in nearly three decades, the United States has intervened in foreign exchange markets to support the Japanese yen, coordinating purchases of the currency with the Japanese government. The move is aimed at halting the yen's slide, which has hit four-decade lows.

The intervention comes at a time when Japan is facing rising import costs, high inflation and political pressure on Prime Minister Sanae Takaichi to restore economic growth.

Why is your body weakening?

Japan has spent billions of dollars since 2022 to curb currency depreciation, but without success.

According to an analysis by The Guardian, the weakening of the yen is related to several factors: investors have massively sold the currency, the Bank of Japan has kept interest rates at very low levels, while the country is facing higher energy costs, as it is heavily dependent on oil and gas imports.

Another factor is public debt, which has exceeded 200% of Gross Domestic Product, the highest level among G20 countries.

Why did the Trump administration intervene?

According to the report, one of the main reasons is the fear that Japan's efforts to support its currency could force Tokyo to sell more US Treasury bonds.

Selling these bonds would increase borrowing costs for the US government, making it more expensive to finance the budget deficit.

President Donald Trump confirmed that the US administration had purchased billions of yen and declared that this was "good for the global economy".

Expert Rebecca Patterson, from the Council on Foreign Relations, argues that rapid stabilization of the yen is also in the interest of the United States, as it could limit the sale of US bonds by Japan.

Pressure on the Japanese government

Prime Minister Sanae Takaichi has faced declining public support, while inflation and rising import prices have hit consumers.

The government has promised temporary cuts in food taxes and major investments to boost the economy, but these measures have raised concerns about further increases in public debt.

The analysis notes that American intervention may also have a political dimension.

The Trump administration intervened last year to support the Argentine peso ahead of the election, and some analysts believe the US president considers Takaichi an ideological ally.

The Japanese government has also approved the largest rearmament plan since World War II, aiming to double defense spending, a policy that has been supported by the Trump administration.


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×