# Forex Intervention

Japan’s Currency Crisis: Record Bankruptcies Expose the Limits of a Weak Yen

The Japanese yen's historic weakness has triggered a record number of corporate bankruptcies in the first half of 2024, particularly among SMEs unable to absorb rising import costs. Structural financial traps and limited monetary policy options suggest that without a fundamental shift from the Bank of Japan, the economic toll on the domestic sector will continue to mount.