2019/07/05(Source: FCオーナーズ運営事務局)
Now, let's consider the case of a weaker yen.
Actually, there aren't many advantages for consumers when the yen weakens. If we had to name one, it would be that those with foreign currency deposits benefit. Basically, the advantages of a weaker yen lie with export industries, and exports from Japan increase significantly. For example, under the Democratic Party of Japan's administration from 2009 to 2012, the yen weakened sharply, resulting in a narrow escape for the Japanese automobile industry.
What about the disadvantages of a weaker yen?
The disadvantages for consumers of a weaker yen are significant. First, the price of imported goods increases, and not only that, but it also leads to increases in the cost of crude oil, electricity, and gas. Furthermore, the cost of overseas travel and luxury goods also increases. In short, consumers' purchasing power decreases, and they spend less money on unnecessary items and decorative goods.
Therefore, those in self-employment or franchise businesses, especially those selling entertainment-related goods or services rather than food and beverage, should constantly monitor economic news, anticipate a weakening yen trend, and take preventative measures.
Incidentally, the terms "yen depreciation" and "yen appreciation" mentioned in the news don't refer to a fixed standard like 1 dollar = XXX yen; rather, they refer to whether the yen has "increased" or "decreased" compared to past monetary values. Therefore, when considering the yen exchange rate, or when reading the news, be sure to understand what it's being compared to, such as "compared to year XX," "compared to month XX," or "compared to the previous quarter."
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