China, South Korea Officials Alarmed as Yen Slide Threatens Exporters

Chatham House

China, South Korea Officials Alarmed as Yen Slide Threatens Exporters (Reuters)

Government officials from China and South Korea warned Monday that the rapidly falling yen may hurt their exporters. Japan’s monetary policies championed by Japanese Prime Minister Shinzo Abe to weaken the yen are an attempt to pull its moribund economy out of a two-decade slump. Officials from Beijing and Seoul, respectively, understand the need for Tokyo to revive its $5 trillion economy and escape persistent deflation but they also expressed worry that the massive monetary and fiscal stimulus has sharply weakened the yen and put their exporters at a disadvantage in global markets. Chinese and South Korean officials have refrained from direct action to maintain competitiveness, such as intervening by buying dollars in currency markets, but there is a risk of a response if their export sectors are severely hurt.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.