Why Isn’t Japan Affected By Currency Difference As We Are?

In our country, perhaps the word we heard the most in the last 5 years was inflation. Even 5-year-olds who should have nothing to do with money terms in the world of economics came to dominate. Due to the policy that our country insisted on in the last years, the dollar rate increased inexorably. In fact, we saw that the Turkish lira depreciated rather than the dollar’s rise.

When we turn our heads and look around 1 dollar is equivalent to 140 Japanese yen We see. Even if we say inflation and exchange rate increase, the equivalent of 1 dollar is around 23.5 TL. So in such a situation, are the Japanese much worse than us? Why are we experiencing a crisis in our country when there is no economic crisis in Japan? The main point here is not about the exchange rate itself, but about the purchasing power.

Even though the exchange rate is high in Japan, the purchasing power of the yen is much higher than the TL.

Japan, beat from the 80s international currency It took a lot of effort to be. As a result of this effort, beat; It has become one of the most traded currencies after global currencies such as the dollar and the euro. Japan, which cares about the power and stability of money, is one of the countries that shows the whole world that the numerical value is not so important.

The problem experienced by the TL is not due to the increase in the dollar exchange rate, but to the sudden depreciation of the currency.

Let’s say you have 100,000 yen. Whatever the value of this coin, you know that it will not lose 10 percent of its value tomorrow. This increases confidence in money. In TL, on the other hand, this trust has been lost.

While we can buy 4220 dollars with 100,000 TL today, if we can hardly buy 3900 dollars with the same money tomorrow, we will see that our money has lost its value. So the important point here is rather than the exchange rate of the dollar. losing credibility of money and a decrease in purchasing power.

Although the Japanese yen seems very worthless against the dollar rate, it is necessary to look at the purchasing power of the people who use the money rather than the value of the money.

According to Japan’s 2021 data Its per capita income is 40,540 dollars. Ymoment; No matter how worthless the yen is, the dollar equivalent of the yen earned by people who own this currency in 1 year is equivalent to $40,540.

This is much more in prosperity makes it live. In the same year, the per capita income in Turkey was around 9,050 dollars. In 2022, this income for our country has been determined as 10,618 dollars.

Japan has a strong industry.

You all know the ad “My dad is a man like Toyota”. japan economy, II. after World War II increased significantly. Japan’s currency does not lose much value against the dollar. For a very long time, annual inflation did not exceed single digits.

This shows that the Japanese yen in a Japanese citizen’s pocket continues to remain at the same purchasing power without melting. Of course, there is an important power behind this. Japan; Toyota, Nissan, Honda, Mazda, Suzuki, Canon, Sega, Nintendo, Sony, Panasonic, Nikon, Bridgestone It has so many world-famous brands that we can’t count. These brands, which serve in the automobile, game console, camera and many other sectors, almost lift the Japanese economy.

So what do you think Türkiye is doing wrong?

Our country actually achieved a very stable growth for a long time. However, in recent years, both the US sanctions and the wrong policies As a result, his currency began to depreciate.

The dollar can be not 23, but 100 TL. The important point here is the purchasing power of your money. So 1 dollar becomes 100 TL, but if the minimum wage is 150.000 TL Even if the dollar is high, we can live in prosperity.

It is seen that Turkey will embark on an economic journey again after the election. We hope the mistakes made will be reversed. and our money becomes much more valuable.