Yen manipulation claims completely off the mark: Aso

Politics Jan. 25, 2013 - 04:45PM JST ( 44 )

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

Order by Time Order by Popularity

44 Comments

10

marcelitoJan. 25, 2013 - 02:42PM JST

Yeah...and white is the new black. They ( Abe,s government and LDP ) have been saying for months that they want to bring down the yen and will do whatever it takes to make it so and now they just blatantly deny it....uhm?
4

gogogoJan. 25, 2013 - 02:48PM JST

They have done it in the past openly so why is it all hush hush at the moment?
-1

walteryJan. 25, 2013 - 02:50PM JST

Manipulation is such a dirty word, we prefer to use management or quantative easing. Suck it up or bark at some one else's door Angy.
5

globalwatcherJan. 25, 2013 - 02:59PM JST

yada,yada, yada.... well the LDP is reversing everything what they have been saying in the past.

You wait and see how the world financial rating agencies will evaluate and underwrite Japan's credit rating when the politicians themselves are not willing to take responsibility what has bee said. This is a critical mistake I assure you that.
16

ADK99Jan. 25, 2013 - 03:20PM JST

To be fair to Japan, the soaring yen was never down to any fundamental strength in the Japanese economy anyway. It was mostly caused by investors viewing Japan as a safe haven in the face of European and American banking instability. Devaluing the currency a little to slow down or reverse those flows is a dangerous game, but as my own country (Britain) has a programme of quantitative easing, as does the US, whilst China refuses to allow it's currency to float, I'm not sure why Japan is deserving of criticism.
7

smithinjapanJan. 25, 2013 - 03:24PM JST

How on earth can they possibly expect any denial to be taken seriously? Abe and Co have been saying LITERALLY they want to devaluing the yen and thus improving business at home and increasing exports. Why would he be forcing the central bank to do what it had to do otherwise?
5

JanesBlondeJan. 25, 2013 - 03:25PM JST

EUROPE is a financial basket case.

The USA has always done whatever it has wanted.

CHINA has manipulated its currently ever since I can remember.

And JAPAN can do WHATEVER THE HELL IT LIKES .... so mind your business Ms. Merkel
-1

globalwatcherJan. 25, 2013 - 03:45PM JST

EUROPE is a financial basket case.

The EU has been calmed down.

The USA has always done whatever it has wanted.

Not really. We may be going through another financial cliff by March as the congress cannot agree.

And JAPAN can do WHATEVER THE HELL IT LIKES .... so mind your business Ms. Merkel

Unfortunately the criticisms are from everywhere, not only from Merkel. Japanese currency devaluation may become another risk factor for the entire world economy to collapse..
8

ebisenJan. 25, 2013 - 03:57PM JST

Yeah, that's the problem with having the most stable and safe currency in the history... Everyone else will start complaining as soon as they stop benefiting from it. The currency was started 3 years ago, with the strengthening of the JPY, that lead already to the imminent crash of Japan's economy.

I'm amazed how attempts to stop this process gets complains from overseas. BTW, a lot of S. Korea's and China's export strength is given by it's artificially kept weak Won and Yuan, how about complaining about these first? Or are the Chinese and Korea products so enjoyable at these low prices that we can keep their currency low but destroy Japan instead?
1

globalwatcherJan. 25, 2013 - 04:00PM JST

CHINA has manipulated its currently ever since I can remember.

Their currency has been also appreciated, but they need to appreciate more.
-2

FPSRussiaJan. 25, 2013 - 04:31PM JST

Whatever it takes to stay in power!!
4

toto_kibokoJan. 25, 2013 - 04:49PM JST

5 years ago the € was ¥160, the £ was ¥260 and the $ was ¥125. The value of the yen is still double and makes all Japanese exports twice as expensive! Now things are beginning to shift and they are already moaning!
-2

DogJan. 25, 2013 - 05:11PM JST

ebisenJan. 25, 2013 - 03:57PM JST

The currency was started 3 years ago, with the strengthening of the JPY, that lead already to the imminent crash of Japan's economy.

I don't know where you've been for the last 2 decades, but it definitely wasn't on the same planet as me.

The Japanese economy crashed at the beginning of the 1990s and has been on the life support of government spending since.

There's no way Japan can beat China in the currency stakes, every Japanese worker would have to take a salary cut of 80%, to compete with their Chinese counterpart, and just a little bit more information that may come as a surprise to you JAPAN RUNS BOTH A TRADE AND CURRENT ACCOUNT SURPLUS WITH SOUTH KOREA
0

DogJan. 25, 2013 - 05:20PM JST

toto_kibokoJan. 25, 2013 - 04:49PM JST

5 years ago the € was ¥160, the £ was ¥260 and the $ was ¥125. The value of the yen is still double and makes all Japanese exports twice as expensive! Now things are beginning to shift and they are already moaning!

5 years ago, Japan was running, with the consent and support of its other G7 partners, a cheap Yen policy in an effort to give it a breathing space to restructure its domestic economy.

You, like Abe, still think that it is 5 years ago and sadly for you both it isn't. Y160 and 125 to the dollar is not the norm and wasn't the natural norm 5 years ago.
0

edojinJan. 25, 2013 - 05:43PM JST

Didn't trust Aso when he was prime minister ... and trust him even less now that he's in position to run Japan's economy.

Just look at the way the yen "weakened" today. What was the reason for that? Somebody pulling strings behind the scene ... or a natural movement?
-1

WakarimasenJan. 25, 2013 - 06:00PM JST

Of course he wants it down - he has even mentioned target of 100. True that yen has doubled in value in last 3 or 4 years and is probably overvalued. Why it is seen as a safe haven in these times of trae deficits and of over 200% debt to GDP ratio is the mystery.
-1

MADCOWSJan. 25, 2013 - 06:09PM JST

What The is Angela Merkel mouning about! germany has been benifitting form devalued Euro for 4 years now selling suppose to be luxury goods at artificialy deflated price! Please shut up Merkel
-2

kevindJan. 25, 2013 - 06:26PM JST

quit complaining europe as far as im concerned they need to fix their s*** before telling everybody else what to do if they had a deflation problem like japan has their printing press would have overheated three years ago bunch of socialist crybabies
-1

Tiger_In_The_HermitageJan. 25, 2013 - 06:28PM JST

The people who complain about others manipulating their currency are the biggest currency manipulators.

Japan was forced to apprciate the Yen more than 20 years ago by the Americans and the Japanese economy has suffered ever since. Japan is using the same method to depreciate the Yen as is the Americans. There are also complaints about China but frankly, its all those sore loosers complaining. The US dollar has depreciated against all major currencies since the Obama regime wanted to increase exports and endlessly print money. What about that? Its not currency manipulation? Oh thats right they are a democrazy and they have legal institutions.... much like those run by Sadam.
0

Ah_soJan. 25, 2013 - 06:32PM JST

Dollar yen will be 100 by the end of the year, if not a lot sooner, so position yourself while you have the time.
0

SerranoJan. 25, 2013 - 08:05PM JST

Keep manipulating the yen until it's around a more reasonable 100-120 yen to the dollar.
2

TamaramaJan. 25, 2013 - 08:26PM JST

They are intentionally devaluing the Yen for very good reason - to stimulate the manufacturing sector and to make Japanese bonds more attractive to foreign investors. This, coupled with forcing the BOJ to be a bit more proactive, and raising consumption taxes (the IMF thinks it should be 15% folks) means that these guys are doing all the right things.
2

YubaruJan. 25, 2013 - 08:30PM JST

The criticism that the government is manipulating the currency rate is completely off the mark,” Aso told a regular press briefing.

This coming from the guy with hoof in mouth disease?
0

YubaruJan. 25, 2013 - 08:31PM JST

Keep manipulating the yen until it's around a more reasonable 100-120 yen to the dollar.

That aint reasonable to me.......in fact it's down right a killer.
0

SerranoJan. 25, 2013 - 08:33PM JST

It ain't a killer for most Japanese businesses or for people who want to visit Japan.
1

blendoverJan. 25, 2013 - 08:48PM JST

Abe's denials are not so far fetched as they seem. Of course he wants the yen to go down. The question is whether internationallly innappropriate ways of achieving that have been used - and they haven't. The market has devalued the yen in response to announced government policies and began to do so in anticipation of those policies.

In a situation in which the yen is in fact overvalued, enacting policies that should cause the market to put a more realistic value on the yen is not at all unreasonable. On the contrary, it is Ms Merkel:s complaints that are unreasonable.

It remains to seen, however, whether the present policies of the Abe administration will be of long term benefit to Japan as a whole, as opposed to its export sector. A higher yen means higher prices. The inflation target is 2%, but the value of the yen has just appreciated by 20%.
2

YubaruJan. 25, 2013 - 09:18PM JST

It ain't a killer for most Japanese businesses or for people who want to visit Japan.

It is for me who has children in college in the US an took loans from Japanese banks and the exchange rate is favorable when under 100 to the $ and saves me money in the long run.
0

mammamiaJan. 25, 2013 - 09:51PM JST

Who is manoeuvring this manipulation should be put in jail or alternately forced to make a living relying on revenue from imported goods..see how funny they may find this game..!!! Markets forces are no more in place here as well as all the logics and fundamentals that determine financial markets..I am disgusted...!!!!!!!!!!
-2

gokai_wo_manekuJan. 25, 2013 - 09:51PM JST

Japan, or any country for that matter, can do whatever it wants. It lives with the advantages and the disadvantages. US friends say their US taxes have skyrocketed due to the strong yen even though their income and expenses here in Japan are the same. So at least US people here will like the weaker yen.
0

YubaruJan. 25, 2013 - 09:55PM JST

So at least US people here will like the weaker yen.

Wait one, just because my nationality is from the US the ONLY time I have had to worry about the yen and dollar rate is now because my children are in college in the US, otherwise it means nothing to me personally as I live on the yen not dollars.

Sure it means something else to others, but in reality 100 to $1:00 seems fair,
0

gokai_wo_manekuJan. 25, 2013 - 10:24PM JST

@Yubaru I was only talking about your income tax payments to the US government. My US friends complain that the shrinking dollar makes them look really rich to IRS, and they have to pay lots of tax money which they didn't have to do when the dollar was at 130 yen about 10 or 15 years ago. I don't pay US taxes so I don't know the details.
-1

YubaruJan. 25, 2013 - 10:50PM JST

@Yubaru I was only talking about your income tax payments to the US government.

I don't pay any income taxes to the US government either.....I am not fortunate enough to be making enough money to have to pay any taxes there AND here. Here is plenty.......
0

Alex EinzJan. 25, 2013 - 10:57PM JST

quite obviously too
5

kchozeJan. 25, 2013 - 11:16PM JST

The policies Merkel is shoving through Europe's throat is causing untold suffering and Great Depression-level unemployment and misery in many countries, all to benefit her country and her dogmas. And Europe is getting back into recession thanks to them... but NO, Merkel is not worried about that, she's worried about JAPAN.

Merkel is the one leader in the western world I hope daily gets thrown out of power ASAP.

I will also point out Merkel's utter hypocrisy. Germany has been using the Euro to have a competitively devaluated currency for ten years or so. If the Germans still had the Deutsche Mark, it would be worth much more than the Euro is presently worth, but since countries that are net importers are also on the Euro, it bring the value of the currency down relative to what it would be had Germany been the only country on it. In fact, before the Euro, Germany had a roughly balanced balance of trade (no major trade deficit or surplus). Since the Euro, Germany has obtained a massive trade surplus worth around 5% of their GDP.

So Germany is one of the worst countries in the world for currency manipulation, along with China... and Brazil.

Hmm.... I guess the way you notice which country is manipulating its currency is by how loud they yell when they think another country is doing it. If they yell really hard that manipulating a currency to competitively devaluate it is bad, then they are doing it MASSIVELY, they just don't want other countries to counter their attempts to keep their own currency low.
1

Kobuta ChanJan. 25, 2013 - 11:28PM JST

Mind your own business Angela. If you don't like it and then sell off Yen from Germany Reserve Bank or buy more Yen for value up. Japanese Government should print more Yen for current domestic circulation and leave Yen from overseas. I believe Yen is over value and it should be $ 1 = JPY 120. S. Korea, China and Taiwan are taking advantage on their low currency and dumping their cheap and poor quality products around the world.
2

GyGeneJan. 26, 2013 - 12:59AM JST

As for what the yen should be, I have no idea! All I know is, I have gotten between ¥272 per $ and ¥78 per $. Right, I was in Japan when the $ was as high as ¥272 one time I changed dollars into yen. For those of us who get salary in dollars (or another currency), we want a weak yen. Tourists too.
1

fupaymeJan. 26, 2013 - 01:49AM JST

Weak yen go go !!!!!

I would be opposed to this if a strong YEN actually made things cheaper in Japan....but it doesn't so lets keep weakening the yen ^O^

whether the yen is 80 per dollar or 120 per dollar, its still super damn expensive to live comfortably in Japan

So might as well get more YEN to make life easier

The 120yen super small size can of coffee I bought a few months ago, isn't suddenly now 140yen because of the weaker yen, so i don't see anything wrong with weakening the yen back to around 100-120 per 1 USD

Even if its 120 yen per dollar, its still 1 USD to buy 2 sips of soda or coffee from the vending machine

Seriously, can you imagine charging someone in the USA , 1 dollar for 2 sips of coffee ?
2

gokai_wo_manekuJan. 26, 2013 - 03:19AM JST

Merkel is imposing a Versailles type regime on Europe. Remember the Versailles regime? That was the regime that Europe imposed on Germany after WWI, and which some people say lead directly to WWII. Maybe Germany is now getting payback. As Europe and the US sink deeper, the yen may strengthen again. Why don't people belive the story that Japan is sinking and the yen should be cheap?
2

gokai_wo_manekuJan. 26, 2013 - 03:42AM JST

@Yubaru I don't pay US taxes because I'm not from US (I did live there for college).

I forgot to add the main point. The yen was maintained at 75 as long as it benefited Japanese corporations. They went on a buying spree of historical proportions. When that was done, then it was OK to let the yen fall, and it started to do so. It is not just the result of "Abenomics", whatever that is. It was just econimics or finance.
0

nicorockJan. 26, 2013 - 04:53AM JST

I think Financial authorities were watching currency markets and would take “appropriate action if necessary”, he added, without elaborating.
1

José Simón Álvarez-BenavidesJan. 26, 2013 - 05:08AM JST

I am not an economist and have learnt a lot by reading all the preceding comments on this piece. However, it feels to me that in principle Mr. Abe may be wrong to tell the Bank of Japan-- BOJ-- what to do at first sight. After all it is the BOJ the organization that has the responsibility for the way some aspects of the economy of the country is managed. Despite what Mr. Abe is saying now it is well documented that not long ago he was urging the BOJ to aim for a two per cent inflation rate short term as well as a devaluation of the yen to ease Japanese exports. Mr. Abe suggested that he might introduce the relevant legislation to 'relieve' the BOJ from its current rôle in the Japanese economy should it not have complied. Now Mrs. Merkel is not that happy with Mr. Abe's approach to trying to revive the slow growing Japanese economy. This is partly due to the fact that a quick upturn in Japan will mean the slowdown of the euro-zone recovery as it may hinder its exports in favour of Japan's. The other problem for Mrs. Merkel is that unlike the whole of the euro-area, she has not got any control over the parameters under which the Japanese economy should operate. Japan is still able to devalue its currency as well determine the interest rates financial institutions lend to business. It can, therefore, easily be argued that Mr. Abe is probably doing the right thing by re adjusting the economy of its country according to domestic needs. Which begs the question: Will the euro survive long term while all its members are locked in economic measures that mainly serve Germany's powerful economic needs ? It will be interesting to follow Japanese/German talks in Davos over the next few days, I think.
3

JaymannJan. 26, 2013 - 06:51AM JST

This Aso speaks with forked-tongue. Of course the Yen is being manipulated. The same with the US$, the Yuan and the GBP. It's what governments do to boost their economies. Too much is made of this....the large economies are all about protectionism and always have been,, Free markets are just so much talk in the G7.
-1

YubaruJan. 26, 2013 - 11:29AM JST

I forgot to add the main point. The yen was maintained at 75 as long as it benefited Japanese corporations. They went on a buying spree of historical proportions. When that was done, then it was OK to let the yen fall, and it started to do so. It is not just the result of "Abenomics", whatever that is. It was just econimics or finance.

Huh? You expect anyone to believe that in the space of a few days that Japanese Corps made a decision to "let" the yen slide and only because Abe got elected? Conspiracy theory anyone?
0

kurisupisuJan. 28, 2013 - 10:38PM JST

We ain't seen nothing yet!!!!

Wait until the bond buying starts!!!!