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Title: The World's Biggest Carry Trade:
Source: [None]
URL Source: ... -hikes-or-sustained-inflation/
Published: Dec 12, 2023
Author: Mike Rivero
Post Date: 2023-12-12 12:09:18 by Horse
Keywords: None
Views: 35

Japan's Reliance On A Massive $20 Trillion Carry Trade Poses A Precarious Situation If Faced With Rate Hikes Or Sustained Inflation.

The BOJ can not afford a stronger yen , because the government of Japan is engaged in a massive $20 trillion carry trade:

First, recall that the carry trade involves borrowing in one currency cheaply (Japanese yen) and converting that borrowed money into a foreign currency which offers a superior yield.

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