Japan reportedly mulls tax breaks to boost yen repatriation

It is being reported that the ruling Liberal Democratic Party (LDP) is considering the possibility of providing tax breaks to firms converting their profits in foreign currencies back into the Japanese yen. The move is said to hope to incentivise companies to bring back overseas profits to Japan. Thus, bolstering up the yen currency in the process.

The officials did say however that full-fledged discussions have not yet materialised and that the course of policy talks remain unclear for now. Well, until it is officially announced, that won’t do much to convince major firms to change any of their existing financial plans. And even with such a change, there might still be some skepticism on the yen outlook. So, that is not to say this is the answer to the yen’s problems. But at this stage, every little bit helps I guess.

This article was written by Justin Low at www.forexlive.com.