BOJ’s Etoh: No big impact on Kansai economy from US-China trade spat

BOJ Osaka branch manager Kimihiro Etoh with some comments

  • There may be some negative impact if US-China trade frictions worsen
  • Many firms in Kansai region won’t see profits hit hard if USD/JPY stays at 105
  • Many firms have reaped higher profits when USD/JPY was around 120
  • Many firm have become resilient to the strong yen as they strive to boost productivity

Well, his views here are speaking to that of one region only. But in general, a strengthening Japanese yen over the last two years surely would not have helped exporters all too much. It is quite unlikely that majority of the firms would have been able to hedge their exposure over such a long period.

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