Yen weakness threatens Japan's small businesses – Chamber of Commerce calls for stronger government measures

MetaMaskVictim · 2026-02-09T09:06:26+00:00

The continuous depreciation of the Yen is putting significant pressure on small and medium-sized enterprises in Japan, as highlighted by the Japan Chamber of Commerce president, who urges the government for decisive action to stabilize the currency.

MetaMaskVictim

2026-02-09 09:06:26

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The ongoing depreciation of the Yen puts small and medium-sized enterprises in Japan under significant pressure. This is according to a recent statement by the Chairman of the Japan Chamber of Commerce and Industry (JCCI), which calls on the government to take more decisive action.

Currency Pressure Threatens Wage Increase Plans

Ken Kobayashi, head of Japan’s largest small business association, warned in an interview that the current Yen weakness is heavily burdening small businesses. The JCCI, representing over 1.2 million small enterprises, sees its member companies significantly hindered by currency developments. Particularly concerning for Kobayashi is the threat to planned wage increases, which are relevant to the economic stability of employees.

According to a company survey by the chamber, an exchange rate of about 130 Yen per US dollar would represent the ideal point to protect small businesses from extreme fluctuations. The recent movement from 159 to 152 Yen only shows the superficiality of previous measures, Kobayashi emphasized.

Market Speculation Recognized as Main Driver

The JCCI chairman is convinced that recent Yen volatility is primarily driven by market speculation — not by fundamental economic factors. This underscores the need for government intervention to ensure stability.

Kobayashi urges authorities to deploy a full arsenal of foreign exchange tools. This includes direct market interventions, strict exchange rate controls, and public warnings against speculative activities. While the government has taken some steps in the past, Kobayashi considers them insufficient given the size of the problem.

Call for Decisive Action

For Kobayashi, the current political response is not enough. He emphasizes that it’s not just about technical price corrections, but about the economic existence of over a million small businesses. An active and resolute government policy to stabilize the Yen is, in his view, essential to protect the wage and investment plans of Japanese small enterprises.

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