However, looking at the value of dollar-denominated trade settlements, one can see that net imports have increased sharply. This is because trade with the United States, a large buyer of Japanese exports, is decreasing, while exports to and imports from rapidly growing Asian countries are growing and imports from the Middle East are increasing sharply.
However, permitting cross-country divergences to linger bears the risk of turning temporary wounds into permanent scars, thus undermining the effectiveness of a single monetary policy for our monetary union in the long run. That said, there is only so much that the central bank can do.