Borrowing in Japanese yen

[Arrowmania]

A friend was discussing an article he read in a Sunday newspaper where Irish people were borrowing money in Japanese yen (very low interest rates) for investment in shares.

Is this possible??

Is it just for investment in Japanese share funds or can this cheap money be used for investing in Irish assets or shares??

 

[Guest]

It's may be possible but remember that borrowing in any foreign currency for whatever purposes involves currency fluctuation risks. Also, in general it is not considered the most prudent thing in the world to borrow in order to invest. See here for example:

www.askaboutmoney.com/guide/ch04.htm