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The abbreviation for the Japanese Yen is JPY, and it is made of 1000 rin or 100 sen. It is represented by a symbol similar to Y’s capital with two lines or horizontal dashes that pass through its center- ¥.
Kavan Choksi Japan – Salient facts about the Japanese Yen
Kavan Choksi Japan is an esteemed entrepreneur with valuable expertise in the field of business and finance. Besides work, he is fond of travel and photography. According to him, when it comes to the Japanese Yen, the following salient facts should be noted-
- The Meiji government originally launched the Yen in the year 1871 as a prime step to modernize the nation economically.
- Investors interested in the Japanese yen can buy Yen ETFs, or they have the option to invest in the Nikkei 225 Stock Average.
- The Japanese yen is now the globe’s third-most traded national currency, and it is considered to be a reserve currency following the steps of the U.S. dollar.
- Recently, the Central Japanese bank has been targeting to attain the 2% inflation goal in an attempt to balance the economic impact of the Coronavirus Pandemic 2020 crisis.
History of the Japanese Yen and its place in the global market today
The Meiji government launched the Japanese Yen as a primary measure to modernize the nation economically. As mentioned above, it is the third-most traded currency in the global foreign exchange market right after the U.S. dollar (USD) and the Euro. It is deployed as a reserve currency in the world today, after the U.S. dollar, the Euro, and the British pound (GBP).
A potent currency in the past
The Japaneseyen has been a potent currency in history becauseof Japan’s strong economy. The number of exports in Japan is more than the imports, and this has made the nation the globe’s biggest creditor country.
An insight into the evolution of the Japanese Yen
Yen means circle or a round object. The Meiji government officially adopted it after the passing of the“New Currency Act” of 1871 with the goal of stabilizing the nation’s monetary situation. Its advent replaced the “mon” currency that was used in the Tokugawa era.
The mon was made of copper, and in 1873, silver becamedevalued, leading to the Yen losing most of its valuewhen compared to the Canadian and U.S. dollars (both adopted the gold standard)
The drop in value of the Japanese Yen
By 1897, the value of the Yen was barely 50 U.S. cents. In the same year, Japan adopted the gold standard like its peers, and this increased the value of the Yen. In 1953, both the rin and the sen stopped circulating in the nation.
According to Kavan Choksi Japan, the Yen was pegged to the dollar of the USA in 1949. When the U.S. went away from the gold standard in 1971, the value of the Yen dipped again, and since 1973, it has been a floating currency due to the oil crisis that made the Yen rise and fall regularly against the U.S. Dollar.
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