The Japanese Yen keeps tumbling, and there’s a lot of factors that go into that. But shouldn’t the massive number of people visiting Japan and buying yen help boost their currency?
In: Economics
How would that work exactly? More tourism means more people are buying your currency, and then spending it locally, but unless there’s a short supply of it to drive up the price, the value of that local currency is still based on external evaluation. That nation overall then has more *foreign* currency, but so what? Sure, Japan is making more ‘money’ with a lot of tourism, but it’s specifically not in yen.
The strength of a currency has much more to do with what can be exported from that country for what local price, and tourism does very little to change that.
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