Yin and Yang, and Yen

It is now official, the world is in a recession and it is deeper than expected. It also claimed the first leader to step down in Iceland. However, the Japanese Yen has hit a record high against almost all the currencies in years. The global economic turndown has brought Yen to be appreciated. Our purchasing power has appreciated by about 30% since last summer. It helps Japanese travellers take trips abroad.

My trip to Russia was not an exception. I had expected high prices in Moscow, but it was not all it's cracked up to be. It was almost the same as Tokyo. I found lots of Europeans who were suffering from such high prices in Moscow. The reason why I did not suffer from the prices is definitely the appreciation of Yen. Yen has appreciated by about 30% against Russian Ruble, which means that everything seemed to me 30% off. The total amount of my 17 days trip was ¥215,000. More than half of the expense was a flight ticket between Tokyo and Moscow. I bought it at the zenith in the last October. If Yen had not appreciated, I would have felt expensive. I enjoyed the benefit of strong Yen.

Japanese tend to consider the appreciation of Yen drawbacks because our economy has been shored up by exports for decades. Indeed, the Japanese automobile industry such as Toyota or Honda are suffering from the appreciation of Yen and lots of temporary workers are losing their jobs. That's a big problem. However, I think it is an opportunity to reconsider a hatred for the appreciation of Yen. Japanese exporters enjoyed the benefits too much under undervalued Yen. I think everything has to get balanced in the end. The benefits of strong Yen will outweigh the drawbacks. It is time to change our perception.