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💥The Japanese Yen falls below a 24-year threshold! Japanese officials reveal intervention plans
Global markets hold their breath. Japanese Finance Minister Shigemitsu Sugawara strongly states his position, issuing a clear warning to speculators: intervention is ready to be launched at any time!
The Yen has depreciated to 157, a level not seen in nearly a quarter of a century. Ironically, the central bank’s rate hikes should have supported the Yen, but instead, it faces relentless selling by the market. What does this reflect? The market has completely lost confidence in Japan’s monetary policy.
Sugawara directly states: "This is purely speculative, with no fundamentals support!" He then references a joint Japan-US statement implying that Washington has already been informed of Japan’s actions. As soon as he finished speaking, the Yen immediately rebounded—though the rise was limited. But the question remains: can threats turn into actions? ⚠️
Last year, Japan spent hundreds of billions of yen to stabilize the exchange rate. Now? An 18.3 trillion yen stimulus plan has already been launched, with public debt accounting for 215% of GDP, and government bond yields approaching a high of 2.1%. Fiscal and monetary policies are both overextended. Is there still room to deploy real funds for intervention? It’s already quite constrained. 🔥
After a thirty-year ultra-loose cycle, the Bank of Japan and the Ministry of Finance are caught in a dilemma: sticking to intervention requires real costs, while allowing depreciation threatens the stability of the entire financial market. This triple pressure (exchange rate, debt, liquidity) could eventually trigger a global storm, or they might forge a new path. The market is watching the next move.