Currency: There is a situation of tension all over the world, ever since the war between US and Iran started, the whole world is suffering from it. Especially it is having a huge impact on India. The prices of petrol and diesel have increased in the country, gas prices have also increased. Apart from this, the country’s currency i.e. Rupee has also become weak. Seeing this, many people have assumed that the country is becoming poor. But do you know that the weakening of the currency of any country never makes the country poor. Let us know why?

Weak currency, poor country!
Amid the ongoing crisis in the Middle East and the strengthening of the dollar, the pressure on the currencies of many countries has increased. In such an environment, the question often arises whether a weak currency means that the country is economically weak or poor? The answer to this question is no! Not at all. The biggest example of this is Japan, which proves this notion wrong.

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Japan’s currency yen has weakened significantly against the dollar in recent years. Many times its price appears lower even than the Indian rupee. Despite this, Japan is the fourth largest economy in the world and continues to dominate technology, automobile, electronics and machinery manufacturing.

How is Japan becoming stronger?
Actually Japan is an export based country. That means there is more production in this country which is exported to other countries also. This brings money into the country and strengthens the country. On the contrary, India is an import based country, we buy more goods from other countries, hence our rupees are spent more. When Yen (Japan’s currency) is weak, Japan benefits more. Because this makes Japan’s exports cheaper and its earnings increase.

At the same time, amidst the current global conditions, investors still consider the Japanese Yen as a safe investment option. This is the reason why Japan’s economic condition remains strong even when there is increasing turmoil in the international markets.

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