Over the past two years, the Japanese yen has been in freefall. In July, the currency tumbled to a 34-year-low against the dollar — and though its value has inched upward since, the yen continues to stand on shaky ground.
But while Japan’s currency has spiraled, the country’s official development assistance has soared. And for Akihiko Tanaka, the president of the Japan International Cooperation Agency, or JICA, that’s been made possible by the country’s heavily loan-based approach to foreign aid.
“By utilizing our borrowing from the government, as well as utilizing the repaying of funds from our partner countries, we can extend loans further,” Tanaka said. “That way, we can increase lending despite the slow growth of Japanese GDP.”