Due to the record-breaking depreciation of the yen, foreigners living in Japan are finding that when they send cash back to their home country, the amount of money they send is lower than before.

Foreigners who want to send as much as 1 yen to their families living in their home country are at a loss.

Companies that provide overseas remittance services in Osaka Minami can send money to most countries in the world by paying a fee according to the amount.

On the morning of the 25th, there were customers who wanted to send money, and among them, a 24-year-old man who came to Japan from Pakistan to study in June sent 100,000 yen to his family in his home country.



However, due to the record depreciation of the yen, there is a situation in which the family receives less money when a man sends money in Pakistani currency, the rupee.

▼When I sent money at the end of September, it was about 1.63 rupees per 1 yen, but as the


yen depreciated,


it dropped to about 1.45 rupees on October 25.



Man


: “It’s a very low rate. I’d like you to raise it because it costs me food and other things.”

A woman who sends tens of thousands of yen to her family in the Philippines every month:


"I'm sending money to help pay for my brother's wife's dialysis, but I have to live in Japan, so it's difficult to increase the amount. Weak yen. I can't help it, but I want you to come back soon."

According to the remittance service company, the yen has depreciated against almost all currencies handled, and the number of customers visiting has decreased by 20 to 30% compared to a year ago.



In addition, some customers say that they are thinking about returning to their home countries due to the weak yen.

Narendra Basnet, a remittance service company, said,


"This is the worst yen depreciation ever. Some people are waiting for the rate to go up, while others have no choice but to send money. We are supporting households. It's very hard for people, right now."

Styrofoam product company “Demand will not recover, only selling prices will rise”

In addition to the sharp depreciation of the yen, the impact of persistently high crude oil prices has forced small and medium-sized companies in Osaka that manufacture styrofoam products to face an unprecedented situation, with demand not recovering due to the impact of the coronavirus, and only selling prices rising. There are voices saying.



Headquartered in Chuo-ku, Osaka, Toho Kogyo manufactures approximately 100 million styrofoam products such as boxes annually.

The raw material for Styrofoam is beads with a diameter of about 3 mm made from petroleum, and raw materials for these beads are purchased from overseas.



For this reason, in addition to the sudden depreciation of the yen, the price of crude oil has remained high, and the purchase price of raw material beads has doubled compared to May last year when the price began to rise.

Toho Kogyo Chairman Mitsugu Shibata


“We have to purchase raw materials and gas



.

The current manufacturing cost per box of Styrofoam has increased by 50% compared to January last year, so we have had to raise the selling price of one box by 30% so far.

The company wants to find a way out of new demand from the recovery of foreign tourists while increasing productivity.



Chairman Shibata


: “While the demand for styrofoam is not recovering due to the impact of COVID-19, only selling prices are rising, which is an unprecedented situation. Manufacturing costs are rising, and unless we raise selling prices, it is becoming difficult to continue our business. Unless we change the country's economic policy itself, I think the yen's depreciation will never return."