Japan Continues Hold the Yen currency
The Japanese government will continue hold the yen after the earthquake and tsunami for some time ago. The measure is on the market, Japan noted the development of its currency and trade with partners in the G-7 if necessary.
At a time when overall response times for the first time since 2000, a group of seven countries to sell the yen on Friday, March 18, 2011, reached unprecedented levels after the currency reform. Conditions that exports from Japan and other trade agreements, which could jeopardize the success of the Japanese economy after a disaster.
“We will work closely with an eye on market movements,” said Japanese Finance Minister, Yoshihiko Noda, a press conference, as part of Reuters, Tuesday, March 22, 2011.
When asked how the market reacts to the intervention, Yoshihiko Noda said he would not comment on specific levels. The yen traded at 80.96 per dollar, stronger or thinner than the previous day for 81.03 per $ dollar as the Japanese market reopened after the long weekend.
Yen had reinforced to a record level of 76.25 per U.S. dollar during the earthquake and tsunami disaster a while ago.
A stronger yen leads to speculation by Japanese companies and financial institutions once again driven the bulk of its investments for fund the reconstruction of Japan’s largest post-World War II.
The authorities are struggling to prevent nuclear disaster crisis that paralyzed and sent humanitarian aid to northeastern Japan. The earthquake and tsunami of March 11, killing at least 21,000 dead or missing and homeless more than 350,000 people.
Although the government has not provided estimates of the damage, Japan’s Economy Minister, Kaoru Yosano, said the total impact could reach 20 trillion yen or U.S. $ 247 billion, and became the costliest natural disaster in the world.
The government seems more than 3000000000000 yen (3 trillion yen) supplementary budget after last year’s 1995 Kobe earthquake. In fact, some believe the figure of more than ¥ 10000000000 (10 trillion yen), or nearly three percent of gross domestic product (GDP) of the country.
However, Prime Minister of Japan, Nauto Kan said it was too early to calculate the amount of the budget and government funding has not been on stage to discuss it.
Meanwhile, together with an indication of the strengthening of the yen, the conditions that will affect Indonesia’s debt payments. According to data from the Directorate of Debt Management, Ministry of Finance, Japan’s position on public debt amounted to 44.4 percent in 2011 and reached 30.46 billion U.S. dollars.
The position of the government debt by currency amounting to 2703.6 billion yen or USD 32.9 billion. Government debt denominated in yen is about 22 percent of the total debt.
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