this post was submitted on 14 Aug 2023
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[–] [email protected] 4 points 1 year ago (5 children)

One Japanese Yen is worth 0.7 pennies today.

[–] arbitrary 64 points 1 year ago* (last edited 1 year ago) (1 children)

You are right, the spot exchange rate at a given point in time is random and tells you nothing (nothing!) about the strength of a currency (or economy). Japan is a great example.

What, however, does indicate a weakening or economic downturn is the uncontrolled depreciation of a currency, which errodes savings, threatens foreign debt paybacks, and makes imports more expensive

The Yen is relatively stable for decades at its spot. The Rubel is sliding against monetary and fiscal efforts, which indicates deeper macroeconomic issues.

[–] MajorHavoc 2 points 1 year ago

"Deeper economic issues" is one of nicer things he's been called since he started openly warmongering.

[–] Windex007 22 points 1 year ago

Year over year, the yen is down 8.3% vs USD

Year over year, the rouble is down 46.2% vs USD

[–] j4k3 21 points 1 year ago

No one is making 10 yen per hour though

[–] [email protected] 7 points 1 year ago

People aren't talking about absolute value. Being worth 0.01 of one dollar or 300 of one dollar doesn't say anything.

People are saying it with the context of the previous value.

If there is a headline saying Euro/dollar has reached 1.30, no one should be responding "so what, the Canadian dollar is 1.35". Because everyone knows the context of Euro/dollar not being near that rate for a long time.

[–] [email protected] 2 points 1 year ago

Ugh, don't remind me (I get paid in JPY).