Dogs Rule on 26 October 2008
| bugrimmar said: OOH... i get it now! then.. why doesn't the japanese government just intentionally lower their currency? |
Because they import a lot of ressources which they pay in foreign currency usually, so they get more foreign currency with the same amount of Yen therefore they pay less for their imports. Same goes for their government debt which is probably in US$, therefore they pay less in yen to buy the currency with which they repay their debt, so repaying their debt costs less in Yen.
