On more than one occasion the US Federal Reserve has decided

On more than one occasion the U.S. Federal Reserve has decided to lower the dollar value against other currencies and the Japanese Central Bank has intervened (sometimes successfully) in keeping the value of the dollar high. Why would the Japanese government make such interventions in the U.S. currency market?

Solution

Japan is a manufacturing product exporter country and USA is one of the major importers of Japanese products. Hence devaluing USD means less profit for Japan. Moreover, Japan is one the prime lenders to USA and devaluing USD Mena\'s devaluing that lending or an overall huge loss. Hence, Japanese government makes such intervention in US economy.

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On more than one occasion the U.S. Federal Reserve has decided to lower the dollar value against other currencies and the Japanese Central Bank has intervened (

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