Japanese business leader criticizes the lack of government measures to ease the yen

An influential leader of one of Japan’s largest small business associations is calling on government authorities to take more active measures to address the problems caused by the weakening of the national currency. At the recent press conference, the industry leader expressed serious concerns about the current state of the currency market and its impact on small businesses across the country.

Optimal Exchange Rate According to Japan’s Trade Leader

Ken Kobayashi, head of the Tokyo Chamber of Commerce and Industry (TCCI), emphasizes in his latest report that the current exchange rate is too low and poses significant challenges for small business representatives. According to a survey conducted by the chamber, the optimal level should be around 130 Japanese yen per US dollar.

This position is important because the TCCI represents the interests of over 1.2 million small and medium-sized enterprises across Japan. The organization’s leader notes that there is a substantial gap between the desired figures and what is currently observed in the market.

Impact of Speculation and Lack of a Comprehensive Approach

Kobayashi points out that recent fluctuations in the exchange rate are largely driven by speculative activity in international markets. The industry leader asserts that government authorities need to employ a full range of tools, including direct interventions in currency markets, interest rate regulation, and official declarations of policy intentions.

While the leader acknowledges some positive steps taken by the government recently, he stresses that these measures are insufficient and improperly scaled relative to the scale of the problem. The absence of a comprehensive strategy leaves many issues unresolved.

Challenge for Wage Increase Plans

The weakness of the national currency directly affects small businesses’ ability to implement plans to improve working conditions for their employees. The leader of Japan’s business community criticizes the lack of government action that hampers local economic development.

The exchange rate dynamics over the past few months—from 159 to 152 yen per dollar—demonstrate volatility that creates uncertainty for medium and small businesses dependent on export income and the purchase of imported materials.