Western economic partners in Southeast Asia had suffered severely after the vote to leave the European Union happened with Britain.
The yen can rise to 95% of the dollar’s value as investors in the British Pound Sterling had rushed to take refuge in different central Asian currencies.
According to Chief Economist of Japan Macro Advisors Takuji Okubo, it is possible that “Abenomics” – which concentrates on placing the yen at lower numbers – will fail at that point.
Japanese President Shinzo Abe requested the Finance Ministry and Bank of Japan on Friday to help stabilise market turmoil and to hold close consultations with G-7 partners.
Meiji Yasuda Life Insurance Chief Economist Yuichi Kodama said that he expects the Bank of Japan to push interest rates on some bank reserves to negative territory.
Currently, to deflate the yen, the bank had lessened the interest rates, meaning account holders will not have to pay to open an account in the bank.
China is facing trouble as it would use more free money to lend to investors. This would mean a major reduction of China’s major reserves but better gain for the country. The world could also praise China’s initiative for bolstering markets worldwide and its willingness to “lift market sentiment.”