Also in the news...
Brilliant Borders: Kenya's Customs goes digital
A new app will save time and money for big businesses and small traders alike, as a longstanding Kenya-UK partnership further improves cross-border trade.
Yorkshire family brewery taps into new export opportunities with Government guarantee
UKEF support helps Wold Top brewery to expand its exports into new markets.
Bond Support Scheme
Find out about the Bond Support Scheme - how it works, its benefits and how to apply.
UK and African business leaders arrive in Togo to create trade and investment deals
The event brings together delegations from ten African nations alongside leading UK companies and investors to advance partnerships that promote economic growth and jobs.
Countering sanctions evasion: guidance for freight and shipping
For freight forwarders, carriers, hauliers, customs intermediaries, postal and express operators, and other companies facilitating the movement of goods.
Yen No Longer A Safe Haven
Traditionally the yen has been a safe haven for investors in times of economic hardship, but it fell to a three-month low of Y97.80 at the end of February as global markets continued to fall, prompting speculation that the currencys days as a safe haven were numbered.
With exports plunging 45% in Januaryfrom the year before, industrial production slipping 10%, public debtspiralling out of control and a record trade deficit, Japan is amongthe hardest hit by the global downturn. The extent of the problems faced byJapans exporters is best exemplified by sales at its car makers.Global production has fallen 54 per cent at Mitsubishi, 54 per centat Nissan, 39 per cent at Toyota, and 33 per cent at Honda. The ferocity of the slowdown in Japanhas forced many large companies, including Sony and Pioneer, to cuttheir workforce by thousands, heightening the risk that the countrysbiggest recession since World War 2 will deepen further. The relative strength of the yen which has exacerbated weak overseas demand by making them relativelymore expensive on world markets is a heavy burden on the Japaneseeconomy. Traditionally the yen has been a safehaven for investors in times of economic hardship, but it fell to athree-month low of Y97.80 at the end of February as global marketscontinued to fall, prompting speculation that the currencys daysas a safe haven were numbered. Yet, it was a month ago that a formerJapanese finance minster told a British newspaper that he expectedthe ministry to take steps to artificially devalue the yen. It seemsas though the speed of unfolding crisis has taken everybody bysurprise. This, however, does not mean an end tothe countrys economic worries; the global downturn will continueto blunt overseas demand for Japanese goods. Japans troubles are not confined tothe economic sphere, after almost half a century of continuous powerthe Liberal Democratic Party is losing ground to the DemocraticParty, and is expected to be defeated in September. This turnaroundof popularity has surely been aided by images of the finance minster,Shoichi Nagagawa, appearing drunk at the G7 summit in Rome lastmonth.