Japan is planning to spend additional 4 trillion yen ($52 billion) to help its exporters deal with a surging yen and spur job creation, Bloomberg reported. 

Meanwhile, the government will add another 2 trillion yen to the 8 trillion yen in foreign exchange reserves being shifted to the Japan Bank for International Cooperation to help exporters and drive acquisitions abroad, the reports said. 

According to a document secured from two government officials’ states a further 2 trillion yen will be allocated to encourage investment in domestic plants and to hire workers.

 The yen appreciation of 6% in 2011 has prompted the government to adopt multi-pronged approach to currency policy. 

Takesh Minami, chief economist in Tokyo at  Norinchukin Research Institute Cosaid, “The government realizes the need to alleviate the pain from the continuing strong yen but the damage has already been done.”  

Besides, Takesh Minami also said, “They should consider ways to stop the strong yen, and they would require more co-operation from Bank of Japan.” Japan’s Prime Minister Yoshihiko Noda said his cabinet will approve the strong yen measures today.

 He opined that dealing with rapid appreciation of the yen is the “highest priority”. The Japanese yen is the official currency of Japan. It is the third-most traded currency in the foreign exchange market after the United States dollar and the euro.