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I think good for saizen unit holders or stocks with earnings in japanese yen after currency translation Yen --> SGD 
Japan Gyohten: long-term yen decline unlikely
notes:
* Dollar's dominance cause of instability-Gyohten
* 10-15 years before yuan can be added to SDR basket
source: http://www.guardian.co.uk/business/feedarticle/9493706
source: reuters
TOKYO, Feb 10 (Reuters) - The yen is unlikely to weaken in the long term due to Japan's persistent deflation, which translates into stronger purchasing power for its currency, a former top Japanese currency official said on Thursday.
"The yen is unlikely to weaken medium- to long-term as long as deflation persists, because currency moves tend to be driven by purchasing power and deflation means that the yen's purchasing power will become stronger and stronger," Toyoo Gyohten told Reuters in an interview. He added that the dollar's dominance was already diminishing as the euro increases its share in global trade, but Europe's credit problems have prevented the single currency from being considered a strong alternative to the dollar.
"The dollar's unipolar dominance certainly has been a cause of instability (in global financial markets) ... The fact that France and China are discussing the dollar's role reflects declining trust in the dollar," Gyohten said. Reform of the global monetary system and changes to the greenback's role as a reserve currency are expected to be high on the agenda at the Group of 20 finance chiefs' meeting next week in Paris.
Gyohten also said it will likely take 10 to 15 years for the yuan to be added to the basket of currencies which backs the IMF's Special Drawing Rights system. This allows members to draw funds to supplement their reserves and currently comprises dollars, euros, yen and sterling.
French officials have suggested setting a timetable for the yuan's entry into the SDR's basket of currencies could be one achievement of their presidency of the G20, but Washington is reluctant to concede this without more yuan exchange rate flexibility. Gyohten was director general of the Ministry of Finance's international bureau at the time of the Plaza Accord in 1985, when rich countries agreed to let the dollar depreciate to reduce the United States' trade deficit.
He then served as Japan's top currency official until he retired from the finance ministry in 1989. He now heads Institute for International Monetary Affairs, a think tank. On Japan's tattered public finance, the government's social security and tax reform package due in June will be the key to gaining market trust, Gyohten said.
"Japan's circumstances are different from other countries as most of its debts are held by Japanese people and there is room for tax hikes ... But that will not act as panacea for markets forever."
Japan Gyohten: long-term yen decline unlikely
notes:
* Dollar's dominance cause of instability-Gyohten
* 10-15 years before yuan can be added to SDR basket
source: http://www.guardian.co.uk/business/feedarticle/9493706
source: reuters
TOKYO, Feb 10 (Reuters) - The yen is unlikely to weaken in the long term due to Japan's persistent deflation, which translates into stronger purchasing power for its currency, a former top Japanese currency official said on Thursday.
"The yen is unlikely to weaken medium- to long-term as long as deflation persists, because currency moves tend to be driven by purchasing power and deflation means that the yen's purchasing power will become stronger and stronger," Toyoo Gyohten told Reuters in an interview. He added that the dollar's dominance was already diminishing as the euro increases its share in global trade, but Europe's credit problems have prevented the single currency from being considered a strong alternative to the dollar.
"The dollar's unipolar dominance certainly has been a cause of instability (in global financial markets) ... The fact that France and China are discussing the dollar's role reflects declining trust in the dollar," Gyohten said. Reform of the global monetary system and changes to the greenback's role as a reserve currency are expected to be high on the agenda at the Group of 20 finance chiefs' meeting next week in Paris.
Gyohten also said it will likely take 10 to 15 years for the yuan to be added to the basket of currencies which backs the IMF's Special Drawing Rights system. This allows members to draw funds to supplement their reserves and currently comprises dollars, euros, yen and sterling.
French officials have suggested setting a timetable for the yuan's entry into the SDR's basket of currencies could be one achievement of their presidency of the G20, but Washington is reluctant to concede this without more yuan exchange rate flexibility. Gyohten was director general of the Ministry of Finance's international bureau at the time of the Plaza Accord in 1985, when rich countries agreed to let the dollar depreciate to reduce the United States' trade deficit.
He then served as Japan's top currency official until he retired from the finance ministry in 1989. He now heads Institute for International Monetary Affairs, a think tank. On Japan's tattered public finance, the government's social security and tax reform package due in June will be the key to gaining market trust, Gyohten said.
"Japan's circumstances are different from other countries as most of its debts are held by Japanese people and there is room for tax hikes ... But that will not act as panacea for markets forever."
