TOKYO (Reuters – Fumio Kishida’s advisers urged Japan’s government Wednesday not to allow the current surplus to shrink further in order to keep the currency markets from being affected.

Japan boasts a large current account surplus. This is a sign of trust in the safe-haven Japanese yen. However, rising fuel costs and slower exports during the Ukraine crisis have created a trade deficit that has a negative impact on Japan’s balance sheet.

The yen fell to just 129 yen this month due to Japan’s declining current account surplus. The yen traded between 128 and the dollar for about a decade.

According to four experts from the Council on Economic and Fiscal Policy, “Persistent decreases in current accounts surplus could have an impact on currency and financial markets.”

This 11-member panel includes ministers, legislators and Haruhiko Kuroda (Bank of Japan Governor).

In a presentation to the panel, the advisors stated that “we must create an economic structure which is resilient to external surprises.”

They also recommended steps to reduce carbonisation, including early restart of nuclear reactors and energy savings, exporting agriculture produce, and encouraging inbound tourism to increase the current account balance.

The advisers stated that “we must restart entry aimed at tourism in stages to help foreign tourists recover” from the COVID-19 epidemic.

Japan’s tourism sector has called on the government for more visitors to Japan. Japan was the third most populous country in the world until COVID-19, which occurred over two decades ago.

Japan’s recent relaxation of entry requirements for students and business travellers has come after criticisms for its harsh border policies.