[Tokyo 18th Archyde.com]–Keidanren Chairman Masakazu Tokura (Chairman of Sumitomo Chemical) said at a press conference on the 18th that the yen’s exchange rate against the dollar hit a low of 126 yen for the first time in 20 years. If the yen depreciated, the trade balance, the current balance, and the economy would have been good, which is no longer so simple. “
The chairman expressed concern that the current depreciation of the yen is proceeding at the same time as high resource prices and high raw material prices. He said, “The trade balance is in the red, and in some cases the current balance may be in the red. At that time, the value of the yen drops, the depreciation of the yen becomes a virtuous circle, and that kind of momentum is not good.”
However, monetary policy changes to avoid the weak yen are “premature.” “Japan is not in the (tightening) stage because the government and the Bank of Japan are working toward sustainable inflation and wage increases,” he explained.
On the other hand, he also pointed out that the depreciation of the yen has highlighted the problems of high dependence on energy and food imports and low self-sufficiency. “Both have risen sharply (price). It is not good for the trade balance, it has a big impact on corporate prices, and it goes around and puts a burden on the people,” he repeatedly appealed for the need to restart the nuclear power plant.
China’s first-quarter gross domestic product (GDP) increased 4.8% year-on-year, according to other economic indicators such as mining and industrial production, “many people point out that recovery is delayed. “It’s true,” he said, including the progress of corona measures. “We have to pay close attention to the degree of recovery.”