Exciting things are afoot in Japan, as the national currency is seeing a significant value increase over the past few days. At the same time, Japan is very open towards Bitcoin and other cryptocurrencies right now. While it is not certain this will lead to a future Bitcoin boom in Japan, the stars are aligning themselves for a major shakeup. Yen Is Dominating All Fiat Currency Markets
In these days of economic turmoil , it is refreshing to see a country dealing with its fiat currency value due to positive reasons. While the Brexit is causing the GBP to plummet even further on a daily basis, Japan is facing a different problem. Their Yen is rapidly gaining in value, which is concerning the government all the same.
Japan is one of the largest economies in the world, and they are dealing with their own problems. But that is not diminishing demand for the Yen by any means. Since the Brexit result came through, the Yen gained 5% in value compared to the US Dollar. Quite a noteworthy increase, even though it is a continuation of previous gains.
During the year 2016, the Japanese Yen has gained over 19% in value, which is quite noteworthy. In fact, the exchange rate against the US Dollar is nearing the 100 yen mark. This is quite a change compared to over 120 yen per dollar back in January of 2016.
Unfortunately, a bullish Yen is not such positive news for Japanese companies and the local economy. Exporting goods produced in Japan become more expensive overseas. Importing goods, on the other hand, becomes a lot cheaper, which may lead to deflation . Unlike most countries, Japan has been suffering from deflation for quite some time now.
It is not unlikely the Bank of Japan will attempt to […]
