# Yen Weakness and Business in Japan

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According to an interview with Bloomberg, the Chair of the Japan Chamber of Commerce and Industry recently called for urgent policy measures to stabilize the yen and bring it back to around ¥130 per USD, warning that the prolonged weak yen is putting serious pressure on Japan’s domestic economy.

📦 While a weaker yen can benefit exporters, official data show that only 3% of small and medium-sized enterprises (SMEs) truly gain from it. Meanwhile, over 1 million local businesses are struggling as rising import costs erode their profits.

🏗️ Business leaders have expressed support for recent market interventions by the government and the Bank of Japan, but stress that stronger action is needed. Without a more stable exchange rate, Japan risks undermining wage growth and domestic consumption, which are both key drivers of economic recovery.

🌱 As the yen continues to hover around ¥160 per USD, many SMEs argue that a return to below ¥130/USD is essential for sustainable growth.

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*Source: Bloomberg Japan.

https://www.bloomberg.com/jp/news/articles/2024-05-10/SD3SXYT0G1KW00