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Actual average currency rate and interesting facts about JPY Currency
The emergence of Yen (“En” in Japanese) was associated with the modernization of the country. Until 1871, there was a complex monetary system that was introduced by the shogun Tokugawa Ieyasu . The money issued by individual principalities lost its value, and the very large amount of money used caused difficulties in trade. Due to this, an all-Japanese currency was introduced, which was modeled on the Spanish Dollar. Simultaneously with the Yen, two smaller monetary units were also introduced – the sen and the rin . The initial value of the Yen was tied to silver.
The standard (ISO 4217) of the Japanese Yen is JPY. The Yen is denoted by the symbol “¥”. This currency is divided into 100 sen and 1,000 rin , though hundredths and thousandths of the Yen were withdrawn from circulation as early as 1954. There are currently 1, 5, 10, 50, 100 and 500 Yen coins in circulation. The coins differ in terms of workmanship and weight, which is a convenience for the blind. The coins depict an ear of rice or a blooming cherry blossom. The 5 and 50 Yen denominations have a distinctive hole in the center. Banknotes currently in circulation are those in denominations: 1,000, 2,000, 5,000 and 10,000 Yen. They present images of distinguished figures for Japan, but also architectural objects and nature characteristic of this country. Japanese banknotes are one of the most difficult to counterfeit in the world. This includes thanks to the holograms and watermarks placed on them, as well as the use of luminescent printing.
The Bank of Japan serves as the central bank of Japan, it was established in 1882. The lost war led to the temporary suspension of the bank’s operations by the occupying government. Also currently, the Bank of Japan is associated with low independence. Its tasks include, above all, issuing cash, controlling the value of the Japanese Yen, and conducting monetary policy and supervision of the financial system. The Governor of the Bank of Japan, together with the Bank’s Council, has the authority to set interest rates. Monetary policy is predictable and based on the assumption of “cheap money”, which counteracts deflation.
Taking into account the values of other currencies, the exchange rate of the Japanese Yen against the background of other parts of the world is quite low. One thousand Yen is less than ten Dollars. The low value of money in Japan makes it difficult to use cash, as thousands of Yen must be paid. The level of the Japanese Yen exchange rate was triggered by World War II, which resulted in the deterioration of the economy. After the conflict, numerous actions were taken to stabilize the exchange rate. The treatments brought the expected effect, thanks to which today the Japanese Yen is referred to as a safe haven. However, the country’s authorities are trying to prevent the appreciation of the Yen. This is because Japan is a resource-poor area. The local economy is focused on new technologies, so in order to maintain a high level of exports, it is best to keep the Yen exchange rate stable but low.