Japan Faces Historic Current Account Deficit – Nikkei

Another surge in energy prices could drag Japan’s current-account balance into the red on an annual basis for the first time in decades, an estimate by Nikkei Asia shows, as costlier oil imports outweigh the export boost from a weak yen.

The deficit could reach 16 trillion yen ($130 billion) for fiscal 2022 if crude oil bounces back to $130 a barrel and the yen trades at 120 against the dollar. Japan’s slide into a current-account deficit has raised questions about the benefits of a weaker currency.

Read the full report: Nikkei Asia
 

READ MORE:

Weak Yen a Sign of Japan’s Poor Fundamentals: Ex-IMF Official

Japan, US to Keep Close Watch on FX as Yen Hits 6-Year Low

Bank of Japan to Move to Second Phase of Digital Yen Project

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

You Might also Like

Japan Will Prop Up Yen Until Freefall Risk Fades: Ex-BoJ Chief

BoJ Holds Firm on Easing But Hints at End to Negative Rates

Japan’s Salaries Surge Could See BoJ Turn to Tightening

Yen, Inflation Stresses ‘Could Force BoJ to Tighten This Year’