What is the official currency of Japan?

The correct answer is Yen.

Key Points

• The Yen (¥) is the official currency of Japan and is abbreviated as "JPY" in international currency codes.
• It was introduced in 1871 as part of the Meiji government's modernization efforts under the New Currency Act.
• The Yen is one of the most traded currencies in the world, ranking third after the US Dollar and Euro in the foreign exchange market.
• The Bank of Japan (BoJ) is the central authority responsible for issuing and regulating the Yen, ensuring its stability and value.
• Japanese coins are available in denominations of 1, 5, 10, 50, 100, and 500 Yen, while banknotes are issued in denominations of 1,000, 5,000, and 10,000 Yen.

Additional Information

• Economic Importance of Yen
  • The Yen plays a crucial role in global trade and finance, as Japan is one of the world's largest economies and exporters.
  • It is often considered a "safe-haven" currency, which means investors turn to it during global economic uncertainties.
• Historical Context
  • The term "Yen" means "round object" in Japanese, reflecting the shape of the coins introduced during its inception.
  • Before the Yen, Japan used a complex monetary system of gold, silver, and copper coins called "Mon."
• Bank of Japan
  • Established in 1882, the Bank of Japan is the oldest central bank in Asia.
  • It is responsible for monetary policy, issuing currency, and maintaining financial stability in Japan.
• Currency Symbol and Usage
  • The Yen symbol "¥" is widely recognized and is used in financial transactions, trade, and pricing in Japan.
  • The ISO code "JPY" is used for currency exchange and international transactions.