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Japanese yen. Is it worth investing in this currency?

Japanese yen. Is it worth investing in this currency?

Japan is one of the countries with the highest debt. In March 2019, it was announced that its public debt is 250% of GDP. Experts also predict that in the near future in Japan will have problems with the extinction of the society. The country is aging rapidly. In 2017, more than 2 million Japanese were aged 90 years and over the age of 75 years working 7.7 million people.

 

Japan belongs to the group of developed countries. Its economy is based mainly on services, less on industry. The country is characterized by high competitiveness and diversity. There are highly skilled workers and wages is one of the highest in the world. The problem in Japan, unfortunately, the ageing of the population. Plus, the state also struggles with a high budget deficit.

 

Despite serious economic problems, the Japanese yen is one of the most secure currencies.

 

The Japanese yen – why is it stable?

 

Although the Japanese economy is one of the most debt in the world, the yen remains stable.

 


Despite the social problems this country is the third economic and trade power. Due to the lack of natural resources Japan is based on foreign trade. Therefore, if the price of the Japanese yen began to rise sharply, all goods would become more expensive. The Bank of Japan wants to prevent such a situation. When the exchange rate increases or decreases significantly interferes with the Bank. Due to this the price of the national currency remains stable.

 

Trust the Japanese yen is also a result of constant awareness of economic development of the state, which occurred in the 1970-ies and 1980-ies. The country, which was dropped two atomic bombs, were able to overcome these challenges and become one of the most economically developed. Japan is also one of the largest creditors of the United States. It is connected with the holding of US Treasury bonds.

 

Japanese yen a safe haven

 

A stable exchange rate of the Japanese yen, the rules imposed by the Central Bank of Japan, as well as a high degree of investor confidence in the currency. All this makes the Japanese yen is the recommended currency for investment, especially in the long term. Investing in the yen is beneficial, especially during times of unrest associated with Brexit.

 

But, the Japanese yen is the only currency in which to invest. Remember, the more diversification of risks, the more safe trade in the Forex market. Don't be afraid to speculate on currency pairs, the volatility of which is higher. For example, even the British pound could be an interesting investment opportunity, just need to know how to use it.

17.07.2020
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