Prime Minister Takaichi Highlights Advantages of Weak Yen: "A Great Opportunity for Export Industries"

"If the Yen Is Strong, Exports Lose Competitiveness"

As the U.S. government designated Japan as a currency monitoring country, Japanese Prime Minister Sanae Takaichi emphasized the advantages of the weak yen.

According to foreign media outlets such as the Nihon Keizai Shimbun on February 1, Prime Minister Takaichi stated during a street speech in Kawasaki City, Kanagawa Prefecture the previous day, "People say the weak yen is bad, but for export industries, it is a great opportunity," adding, "The Foreign Exchange Fund Special Account is also in a very good state."

Yonhap News Agency

The Foreign Exchange Fund Special Account is a special account managed by the Japanese Ministry of Finance to provide funds for market intervention during sharp currency fluctuations. It is similar to South Korea's Foreign Exchange Stabilization Fund.

She pointed out that the yen was strong during the previous Democratic Party administration, saying, "I don't know whether a strong yen or a weak yen is better," but added, "If the yen is strong, exports lose competitiveness."

Since Prime Minister Takaichi took office, the yen-dollar exchange rate has risen, causing the yen to depreciate, and her aggressive fiscal policy has been cited as a major factor. On the same day, Yoshihiko Noda, co-leader of the Centrist Reform Alliance, criticized in a campaign speech in Saitama Prefecture, "Because of the weak yen, import prices will rise further, but nothing is being done."

In response, Prime Minister Takaichi posted on X (formerly Twitter) that day, stating that there seemed to be some misunderstanding among Japanese media outlets regarding her remarks, clarifying, "I am not saying that either a weak yen or a strong yen is better or worse."

She added, "My intention was to say that I want to build an economic structure that is resilient to exchange rate fluctuations," and emphasized, "I was not highlighting only the advantages of a weak yen."