Problems relating to Trade and Investment on United States

 
12. Exchange controls
Issue
Issue details
Requests
Reference
(1) Rapid Exchange Fluctuations - As it stands, Member Firm's Subsidiary (MFS) benefits from exchange gain on a direct export transaction in yen. Nevertheless, negotiation for raise in price is difficult. In a transaction with its parent company, the prevailing Yen depreciation enables MFS to offer special prices to its customers. However, MFS runs on a thin margin, so that if the exchange rate swings toward appreciation of Yen, it will instantly show operational loss: such is the severity of the fluctuation band. - It is requested that GOP takes step to:
-- stablise foreign exchange fluctuations, and
-- holds the fluctuation band within a few percents in 6-months.
  (Action)
- The weaker yen, stronger USD base up to 2015 has rapidly shifted since 2016 to stronger yen, and weaker USD base.
- On 29 April 2016, the U.S. Department of Treasury designated 5-Countries/Areas, with large trade surplus against the U.S., i.e., PRC, FRG, Japan, Korea, and Taiwan on "the Trade Policy Watch List", checking the respective exchange policy geared toward weaker currencies (RMB, DM, JPY, TWD, respectively).

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