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Japan has been at the heart of global economic development for a long time.
It is precisely because of this that the yen has always been the type of currency chosen by many countries when it comes to foreign exchange reserves. With its influence in the global financial markets, Japan has also established a very large financial system.
However, the recent decline in the yen exchange rate has attracted widespread attention as a result of a professional organization that has not occurred in Japan in the past 34 years.
The sharp decline in the yen's exchange rate has helped to boost Japan's export competitiveness to a certain extent and promote the development of the Japanese economy. At the same time, it will further exacerbate the outflow of capital.
The currency exchange rate is very important for the economic development of a country, and in the case of a relatively low currency exchange rate, it is bound to cause great trouble to investors, making many investors worry about whether the financial theme is in a stable state.
In the face of this situation, most funds will flee, and a large amount of capital outflow will be a major disaster for the financial market, and will even affect the development and stability of the national economy.
In response to the sharp decline in the yen's exchange rate, some analysts believe that the yen is currently experiencing a large-scale shorting.
The impact and future direction of the short-selling event are still unclear, and even beyond what Japan can afford, and there is a high risk that the yen will lose its position in the global monetary arena.
With the sharp decline in the yen exchange rate, a large amount of international capital has been attracted to join.
In response to this situation, the Japanese side also made a decisive counterattack. Some Japanese media broke the news that the Bank of Japan is currently planning to reduce its holdings of U.S. Treasury bonds in order to support the yen's exchange rate.
Prior to this, some professional institutions predicted that the United States was likely to take Japan as a knife, especially when the Federal Reserve continued to release interest rate hikes, which was also a preparation for harvesting global wealth.
In the cycle of interest rate hikes, the United States has started a plan to harvest the global economy, and this plan is ongoing.
In addition to the economic harvest plan, the United States has other plans, and this plan is likely to be aimed at Japan.
Although the Federal Reserve has raised interest rates several times, the Japanese government has not taken any action or adopted a policy of raising interest rates to reduce the decline of the yen's exchange rate.
At the same time, the Japanese government has previously lowered the interest rate on the currency.
However, under the continuous shocks, the Japanese side can no longer continue to maintain the previous policy. Not long ago, the Japanese government announced that it would raise interest rates slightly, announcing the end of the era of negative interest rates. But this time the rate hike is not large.
Although the Japanese government has already begun to promote the policy of raising interest rates, the exchange rate of the yen has fallen and depreciated one after another.
After the Bank of Japan launched its interest rate hike policy, there was a lot of negative information about Japan, and this information continued to brew, and a large amount of international capital joined the ranks of shorting the yen and Japanese government bonds.
In recent years, Japan's economic development has not been optimistic, especially after the bursting of the economic bubble in the 90s of the 20th century, Japan's economy has been declining for many years, and even reached the lowest level at one time.
Even though the Japanese economy has since recovered, the pace of economic growth has been very slow.
The main reason for the slowdown in Japan's economy is directly related to the QQE policy implemented by the Japanese government, which mainly requires the Bank of Japan to buy its own government bonds.
At the same time, it is also necessary to promote the development of the Japanese economy through the flow of funds outside the market. Since then, the Bank of Japan has been printing money aggressively.
In the face of the increasing issuance of banknotes, Japan's bond yields have been stabilized. But it has had a big impact on the banking industry.
In order to further solve the problem of inflation, the Bank of Japan can only strictly follow this policy.
However, under constant pressure from the United States, it is very difficult for the Bank of Japan to maintain this measure.
Now, the yen has been subjected to large-scale shorting by international bears, which has led to a sharp decline in the exchange rate of the yen. What impact will this phenomenon have on Japan's economic development?
In this regard, some analysts believe that if the yen exchange rate falls sharply, the credibility of the yen will also collapse. Originally, it had a relatively high position in the field of international currency.
As a result of this incident, the yen's international status will decline sharply. At the same time, the monetary stability of the yen will also be greatly affected.
Some analysts believe that, judging from the current situation of world currency transactions, the impact of this short-selling incident in Japan is unbearable for the Japanese side, and it will even cause a bubble in financial derivatives, resulting in a sharp increase in the number of illegal and black market transactions.
Against this backdrop, the renminbi's share of global currencies will further expand.
What do you think about the status of international currencies? Welcome to discuss in the comment area!