Japanese currency: history of currency development

As you know, there are almost as many types of currency in the world as there are sovereign states on the Earth. And almost every people the appearance of their own money is accompanied by changes in the country that have historical significance. The monetary unit of Japan, which arose during the period of epochal changes in the Land of the Rising Sun, is not an exception.

When did the yen appear?

The monetary system of the island state before the Meiji period was a different kind of valuable means: it was both paper banknotes and coins from various precious metals (copper, silver and gold). At the same level, both the central government signs and the currency of individual principalities functioned on an equal level. This system of money circulation was complex and was called "Zeni".

The modern monetary unit of Japan appeared after carrying out some reformatory changes in the country during the Meiji period (in 1869). Then the government adopted a currency system with a decimal calculus, in which one yen was 100 sen, and the unit of the latter could be divided into 10 rin.

It should be noted that the currency of Japan for the period of adoption was immediately tied to the world gold standard. The first coins of the yen were equal to 15 mg of gold, and the silver ones were forged from 24.3 g. These signs were round, which differed from the previous money (they produced different shapes: square, oval, rectangular, etc.), and as a result The name "yen" from the hieroglyph 円 (round).

Monetary Policy

With the establishment of a standard currency, the Japanese government entered the "sterling block", which marked the dependence of its currency on Britain's share of the world economy. In 1933, the Land of the Rising Sun had to abandon the standard of gold, and after that the exchange rate already influenced the amount of this precious metal, which had in its composition the monetary unit of Japan. In the 40s of the 20th century, the unstable state of the economy and military actions in the territory of China led to a drop in the content of the noble element from the established 15 mg to 2.9 mg. As a result, the government of the island state decided to reorient itself to the US dollar.

In 1953 the IMF officially approved the par value of the Japanese currency, which was equated to 2.5 mg of gold. Thus, the currency of the Land of the Rising Sun was recognized by the world community. Gradually, the yen rose, and it became a convertible currency.

Banknotes

Modern means of payment in Japan are paper denominations of up to 10 000 denominations and coins of denominations of 1, 10 and 50, as well as 100 and 500 yen. Previously existing small signs, such as rin and sen, were abolished. If the reader is interested in the question of what currency in Japan (that is, how it looks), we will give the following information.

Coins worth 500, 100 and 50 yen are made of nickel alloy, on the reverse side of these values are depicted flowers that are of particular importance to the inhabitants of this country (paulownia, cherry and chrysanthemum).

Coins of 10 and 5 yen are made of bronze, and they are decorated with images of a Buddhist monastery and an ear of rice, respectively. For 1 yen is used aluminum, the front side is decorated with the symbol of the seedling.

Paper bills contain portraits of the most significant persons in Japan. These are, as a rule, figures who have received worldwide fame in the field of literature, enlightenment and other spheres. For example, 1000 Yen is decorated with a portrait of Natsume Soseki. Recall also about the name of the currency of Japan in the system of banking codes - JPY.

To date, this type of currency has lost some weight in the world economy due to a strong earthquake, which caused great losses, as well as the crisis situation that has developed in the community of the planet. However, the yen continues to be used on stock exchanges, as it has a more stable position compared to other currencies.