The currency of Japan is the Japanese Yen, usually symbolized by ¥. The yen comes from the Japanese word “Yen” which means “round object” or “circle”. The currency code for the Japanese Yen is JPY. The Osaka Mint Office is responsible for the minting, control and circulation of the Japanese currency. The Japanese Yen is the most heavily traded currency in Asia and among the most traded currencies in the world currency markets. This is attributed to the currency’s relatively low interest rates relative to other currencies such as the Australian dollar and the US dollar.
History of the Japanese Yen
The minting of silver and gold coins called WadoKaichin began in the 8th century. The coins looked like Chinese coins. However, at one point Japan was unable to produce its own coins. Therefore, they started buying the Chinese currency for their own use. However, in a short time, the supply of Chinese coins was unable to meet the growing demand from locals for business reasons. As such, Japan employed the services of a private company to mint multiple coins. The coins were injected into the Japanese economy and used between the 14th and 16th centuries. The two coins were called Toraisen and Shichusen.
In the 15th century, the government began producing Koshu Kins which were silver and gold coins. He later established a uniform monetary system consisting of gold, silver and copper coins. In the 19th Century, in addition to Koshu Kins coins, the Japanese could also use Spanish dollars. The government introduced the Yen in 1871. It was a strategy of centralizing the various currencies that existed at the time. The value of the Yen remained stable until the end of World War II when it depreciated. Subsequently, in 1971, the yen was pegged to the US dollar at a fixed exchange rate of 308 Japanese yen for every US dollar 1. The Japanese Yen operated at a fixed rate until 1973 when the government resorted to a fixed rate of floating exchange rate.
Banknotes and denominations
One Japanese Yen can be divided into 100 Sen. Japanese Yen coins are denominated in 500, 100, 50, 5 and 1. The coins feature images such as flowers, temples, trees and rice. They are made of nickel, cupro-nickel, bronze, aluminum and brass with the exception of the one yen coin made entirely of aluminum which allows it to float on water.
The banknotes are in denominations of 1,000, 10,000 and 5,000. The 2,000 banknote exists but is rarely used by the public. The notes feature images of Mount Fuji, flowers, and animals such as mice, chickens, horses and lions. These features have made the Japanese bank record the world’s toughest bill to counterfeit.
Exchange rate of the Japanese yen
The dollar to yen exchange rate is usually around 1 US dollar per = 99.3774 Japanese Yen. For travelers, it is vital to know that currency exchange in Japan can be done at the airport, post office, or an authorized foreign bank. Cash is more acceptable than plastic money. However, this may change in the future due to globalization.
