Japan - The yen’s significant devaluation against the US dollar is eroding the purchasing power of Japanese residents, push

Japan 🇯🇵 - The yen’s significant devaluation against the US dollar is eroding the purchasing power of Japanese residents, pushing them to invest in gold. Buying of yen-denominated gold at the nation’s largest dealer has driven the price of the yellow metal above the ¥10,000 per gram level. Gold prices have shot up about 70% over the past three and a half years from under ¥5,900 yen in January 2020. This reflects the dramatic collapse in the value of the yen , which recently passed ¥147 against the US dollar. The BoJ bought a record 135 trillion yen ($1 trillion) in gov’t bonds in fiscal 2022 as it tried to keep interest rates low. Still, interest rates continued to rise, forcing the BOJ to raise the target ceiling for the yield on 10-year gov’t bonds. Investors sold government bonds, leading to a spike in interest rates. The BOJ owned more than 50% of outstanding Japanese gov’t bonds as of the end of 2022. In a strange twist, Japanese investors bought the most overseas bonds since March 2020, in early September 2023. Maybe Japanese banks bought U.S. 🇺🇸 long-term treasuries amid the idea that rate rises are close to over? The BoJ’s ultra-low interest rate policy has failed to boost the world’s third-largest economy in a sustainable way, sending inflation toward a 40-year high. Japanese investors sold a record amount of overseas debt last year as local yields rose on speculation that the BOJ would normalize policy. The IMF proposed to the BoJ to allow for more flexibility in long-term Japanese gov’t bond yields that have been kept at depressed levels amid the “costly“ side-effects of prolonged monetary easing. In Jan. 2023, the 🇯🇵 BOJ made massive unscheduled bond purchases after it announced a widening of the range in which the 10-year yield can trade to about 0.5% from %. Video source - Sean Foo Источник: The Paradigm Shift Channel ⏳