Chapter 237 – Gold Export Re-Prohibited

On December 17, 1931, the newly formed Inukai administration made the decision to re-prohibit the export of gold from Japan as its first de facto act in office.

As a result, the Japanese yen was no longer convertible into gold, and the system shifted from a fixed exchange rate to a floating exchange rate.

And here, a small storm erupted. Japanese zaibatsus and banks other than Ootori had been buying dollars in order to use speculation to cover other losses. That had been the primary reason for the change in administration.

Under the fixed rate, the exchange rate against the United States had been 100 yen to 46.46 dollars, or roughly 2.15 yen to the dollar. It plunged all at once. Soon after, it fell below 100 yen to 40 dollars, or roughly 2.50 yen to the dollar.

The reason it was better