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Cash Is Still King in Japan, and That Could Be a Problem for the BOJ

Preference for yen could limit scope for negative rate cuts

10,000 yen notes.

Photographer: Tomohiro Ohsumi/Bloomberg
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As anyone who has visited Japan knows, cash is still king.

Even though many places now take credit cards, Apple Pay and other forms of cashless technology, the actual amount of notes and coins circulating in the country has doubled in 20 years. And that’s while the economy and population has shrunk.