A senior official in Japan’s government emphasize the need for government to take action as needed to stop the excessive currency drops. Seiji Kihara serves as the government of Prime Minister Fumio Kishida’s deputy chief cabinet secretary. Comments reveal how deeply concerned officials are about the yen’s decline.
Additionally stated, the administration would take into consideration easing tough border controls to further open Japan’s borders to foreign tourists. As investors pay attention to the growing gap between the Bank of Japan’s commitment to maintaining ultra-low rates and the U.S. Federal Reserve’s aggressive interest rate rises, the yen has taken a beating versus the dollar.
According to the Nikkei newspaper, the administration is considering eliminating the October visitation restriction. Beginning on September 7, Japan loosened border restrictions by increasing the daily admission cap to 50,000 and allowing visitors unfettered passage. According to analysts, removing the cap and letting more travelers would be essential to luring in foreign investment. The administration of Prime Minister Shinzo Abe declared its intention to significantly raise defense expenditure “over the next five years.”