Stable currency and economic status are two important considerations to make when establishing a business abroad. For this reason, most international companies use $ US dollar for their payments.
In the financial market, there is a highly interesting topic that says,
“When will USA’s QE (Quantitative Easing) finish?” Quantitative Easing refers to an increase in the amount of currency in order to have more money available for various institutions. This strategy is used to ensure that inflation won’t go below the set target. Also, it helps the economy to run smoothly in order to combat financial crisis.
After the shocking bankruptcy of Lehman Brothers, the United States started to implement this strategy that resulted to an increase in the value of currency. While the effect gives a strong impact in the currency market, the previous value of currency (like in Japanese Yen) continued to depreciate.
On the other hand, the Japanese long-term national bond yield is still around 1% and this rate shows a strong and stable Japanese Yen as well as the economy. Basically, a country’s economy is considered in the critical line when it reached over 7% just like what happened in Greece.
As observed, the Japanese economy is starting to boom after the change made in its policy, which is a good sign of growth and Included TPP (Trans Pacific Partnership), Government of Japan will hold active dialogue on the economic aspect with the global community. Under this circumstance, we believe that it’s a good time to start your business in Japan.
