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<DIV><FONT face=Arial size=2>Your explanation that Japanese yen "depreciated"
against US dollar </FONT></DIV>
<DIV><FONT face=Arial size=2>after the Plaza Accord is an error. It was
"appreciated," in other</FONT></DIV>
<DIV><FONT face=Arial size=2>words, the value of Jppanese yen increased against
US dollar.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>You say on <A
href="http://en.wikipedia.org/wiki/Plaza_Accord">http://en.wikipedia.org/wiki/Plaza_Accord</A>:
<P>The <STRONG>Plaza Accord</STRONG> was an agrrement signed on <A
class=internal title="September 22"
href="http://en.wikipedia.org/wiki/September_22">September 22</A>, <A
class=internal title=1985 href="http://en.wikipedia.org/wiki/1985">1985</A> to
make the Japanese <A class=internal title=Yen
href="http://en.wikipedia.org/wiki/Yen">yen</A> cheaper. </P>
<P></FONT><FONT face=Arial size=2>In 1985, 1 US dollar was exchanged
for 216 yen according to the table on the same page. But
the relative value of yen kept rising (appreciated, in other words)
mainly because of the Plaza Accord until it reached 132 yen to a
dollar in1988 </FONT><FONT face=Arial><FONT size=2>according to said
table<FONT>. If the intent of the Accord was to cheapen yen as you say, it
obviously failed to achieve the objective completely. Actually, the
intent was to raise the value of yen against US dollar.</FONT></FONT></FONT></P>
<P><FONT face=Arial size=2>Yen has been going up steadly with some ups and downs
here and there against US dollar since 1985, and it is now 108 yen to
a US dollar, or a great appreciation, not depreciation. Yen's value
increased more than three times since 1945 when it was fixed at 360 yen to a
dollar in 1945.</FONT></P>
<P><FONT face=Arial size=2>Now, everyone is concerned abou Chinese currency
which is artificially suppressed for the benefit of Chinese export, by fixing it
to US dollar. People are saying that now is the time for the second
Plaza Accord to free up the exchange ratio of Chinese currency against US
dollar.</FONT></P>
<P><FONT face=Arial size=2>Minoru Mochizuki</FONT></P></DIV></BODY></HTML>