Marketplace®

Daily business news and economic stories

Japan’s trade negotiations may be troubled by currency

Some are claiming the Bank of Japan is manipulating currency.

Japanese Prime Minister Shinzo Abe is visiting the U.S. this week, and on his agenda: negotiations for a trade deal between the U.S. and Japan, along with ten other countries. One potential sticking point is the way Japan handles its currency. For the last few years, Japan has pumped more currency into circulation, saying it wants to flight deflation.

“But everyone knows that behind that is definitely a business community that’s has complained for many years that the value of yen too strong,” says Scott Seaman, a senior analyst with the Eurasia Group.

Many Japanese exporters would prefer a weaker yen, so Japan goods become cheaper relative to competitors in other countries. That is why this a trade issue, says Eswar Prasad, an economics professor at Cornell.

“Some people in the U.S. are concerned that by opening U.S. markets, and by tolerating other countries’ policies that drive down the values of their currencies, the U.S. might lose out,” he says.

Related Topics

Latest Episodes

View All Shows
  • Marketplace
    7 hours ago
    25:19
  • Make Me Smart
    13 hours ago
    19:00
  • Marketplace Morning Report
    16 hours ago
    6:55
  • Marketplace Tech
    20 hours ago
    8:33
  • This Is Uncomfortable
    3 days ago
    56:05
  • Million Bazillion
    24 days ago
    32:45