After the US dollar and the Euro, the Yen of Japan is the most valuable currency in the world. JPY is the currency code of the Japanese Yen in the forex trade market. Introduced in 1871, its official symbol is ¥, and it is also used to represent the Chinese Yuan across the globe. The symbol ¥ with JP¥ is used to separate the Yen of Japan from the Yuan of China in the global market.
Discover some amazing facts about the Japanese Yen with Kavan Choksi
Kavan Choksi is a business and finance expert with valuable knowledge about investments and trading. According to him, the Japanese Yen ranks as the 4th reserve currency after the American dollar, the Euro, and the British Pound in the world. The banknotes of the Yen currency are released by the Bank of Japan, which is the Central Bank of the country, in four denominations 1,000, 2,000, 5,000, and 10,000.
What is the meaning of ‘Yen’?
Yen means “round object” in Japanese, and it is believed that it derived its name from the perfectly shaped round coins when they were first minted. The local people often call it Okane, which means the money in the country.
The role of the Yen in the Japanese Economy and Forex Market
The economy of Japan is a free-market one, with its service industry making up approximately 69% of the nation’s GDP. In 2020, it became the third largest national economy in the world in terms of nominal GDP, with it being estimated at $1.3 trillion (USD). In 2018, the nation became the 4th largest importer and exporter across the globe. The Japanese Yen is widely traded in the Forex market, and it is one of the most stable currencies in the world today.
The glorious past of the Japanese Yen
It was in the 19th century that, along with local currencies, Spanish dollars were used in Japan. The New Currency Act came into effect in 1871, and it officially introduced the Yen to the people of the nation under the Meiji Government to rectify the monetary situation of the country. The Yen currency replaced the Mon that was being used as the nation’s legal tender under the Tokugawa Era.
The Bank of Japan was established in 1882 to monitor the money supply, and in 1897, the country embraced the Gold Standard. After the Second World War, a fixed exchange rate for the Yen was established to improve the economy of Japan. In the process, the value of the Yen currency dipped, and it was set at 360 JPY for 1 USD. In 1973, the Japanese Yen gained the status of a floating currency.
According to business and finance expert Kavan Choksi, the Government of Japan has taken extraordinary measures to prevent the Yen from being counterfeited, like the use of intaglio ink, holograms, etc. The banknotes have a special luminescent ink that glows under UV light. No one in the nation can even scan or print the currency note, and the Government of Japan constantly endeavors to improve its print and design over time.