In 2022 the value of Japan’s currency, the yen, fell by 35% against the US dollar.
Japan’s central bank intervened in the currency markets to increase the external value of the yen. This intervention cost the central bank $20.8 billion.
Evaluate policies that can be used to prevent a country’s exchange rate from depreciating. Refer to a developed country of your choice in your answer. [20 marks]
