Choice of Invoice Currency and Exchange Rate Risk Management: 2017 Questionnaire Survey with Japanese headquarters (Japanese)

This study presents the summary results of the 2017 RIETI Questionnaire Survey where 1,006 Japanese listed firms were surveyed. The foreign exchange risk management and invoice currency choice of Japanese exporting firms are investigated and compared with the results of the 2009 and 2013 RIETI Questionnaire Surveys. Our findings are two-fold. First, the share of yen-invoiced exports has declined and become much smaller than the corresponding share of the U.S. dollar in Japanese exports to the world, while the share of U.S. dollar-invoiced exports accounts for about 60% of Japanese exports if taking into account firms' export amounts. Thus, Japanese exporting firms are more exposed to exchange rate fluctuations. Second, the use of Asian currencies has increased steadily. 44% of the sample firms use the renminbi (RMB) for their transactions, and the larger the company size, the stronger is the tendency to use RMB transactions. The corresponding share of the Thai baht and Korean won also increased. The marked increase in the use of Asian currencies suggests that it has become more important for Japanese firms to manage exchange risk more efficiently against Asian currencies.