Tokyo Sees Severe Yen Depreciation As 'Problematic' - Finance Minister

Tokyo Sees Severe Yen Depreciation as 'Problematic' - Finance Minister

The drop of the Japanese yen's value to the lowest point in almost 20 years is a huge problem, Japanese Finance Minister Shunichi Suzuki said on Wednesday

MOSCOW (Pakistan Point News / Sputnik - 13th April, 2022) The drop of the Japanese yen's value to the lowest point in almost 20 years is a huge problem, Japanese Finance Minister Shunichi Suzuki said on Wednesday.

"Sharp foreign exchange moves are very problematic and we will keep a close eye (on the Currency market)," Suzuki was quoted as saying by the Kyodo news agency.

Japanese Chief Cabinet Secretary Hirokazu Matsuno also believes that sharp fluctuations in the exchange rate are "undesirable," and the government will carefully monitor the impact of the yen's depreciation on the country's economy, the news agency reported.

The Yen fell to below 126 to the US Dollar on Wednesday. The last time the exchange rate of the national currency in Japan reached this value was May 2002.

Rapid depreciation of the yen could slow down Japan's economic recovery from destructive COVID-19 pandemic effects, given rising energy and commodity prices as a result of the Ukrainian conflict, the media reported.

On February 24, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Luhansk appealed for help in defending themselves against Ukrainian provocations. In response, the EU rolled out a comprehensive sanctions campaign against Moscow, which includes airspace closures and restrictive measures targeting numerous Russian officials and entities, media and financial institutions. The move has resulted in a spike in fuel prices around the world and disrupted supply chains.