The market of Japan displays its longest deficit in trade within the time period of three decades after there was fall in the export scenario, which resulted in a challenge for the Bank of Japan, the economy that is considered as the third largest zone in the world.
According to reports by the Finance Ministry which was revealed today at Tokyo, it is seen that the shipment process dropped by 2.9 percent in comparison to its data of previous year. The estimation by 22 analysts and economists associated with the survey of Bloomberg shows that there was a drop by 1.7 percent, whereas imports got high by 11.9 percent, resulting in a trade downfall of around 777.5 billion yen.
It is expected that Kuroda who is scheduled to be having his first press conference at Tokyo today will opt for all possible steps in order to bring out Japan from its deflation. He had pledged that there will be some monetary policies to ease out the position of yen against dollar. It is being seen that the value of yen is getting dropped when compared with its other prominent currency peers. Though the drop in yen shows better outlook for the exporters in the coming months, the import billing for the nation is on a high with various plant shutdowns.
Yoshimasa Maruyama who is the executive head economist at Itochu Corp, which is based at Tokyo, and is responsible for the import of oil and natural gas, starting from the year October 2011, states that though this is a lagging time for the market, it will need a push for the yen to get back enhancing the export.
The deficit and fall of the month of February is reported to be the eighth trade fall continuously, the longest at stretch since the time of 1980. The value of yen showed little and nominal changes by 95.97 against dollar at Tokyo local time 11.32 am.
The export trade situation also falls by 15.8 percent after China had its week long holiday due to Lunar New Year in the month of February. The shipment process to Asia also dropped by 5.2 percent, whereas the export situation in US rose 5.7 percent. On the other hand, the European Union dropped by 9.6 percent.
It is stated by Junko Nishioka, the head economist at RBS Securities Japan Ltd. that the easing policies of the Bank of Japan will tend to weaken the value of yen more, thus enhancing the cost of import along with trade loss expansion. However the positive impact of this weakening yen is yet to be observed.
At the press conference of Tokyo, Kuroda will be speaking to the press regarding his policies to help end the deflation of Japan.