The currency of Japan as the most important element of the value exchange system of the world economy

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

One of the most developed countries in the modern world today is Japan. Worthy position of the land of the rising sun in the world

trade arena busy not without the participation of a powerful financial industry, one of the main elements of which is the currency system of Japan. For many years now, it has been stimulating the state's economy, helping the domestic industry to develop new markets. At the same time, the currency of Japan is a freely convertible monetary unit and the most important means of exchange of values of the international economic system. Of course, after the US dollar and the euro.

History of the yen

Japan's currency has a proud eastern name - the yen. It denotes the roundness of the currency. What is connected with the reforms of 1871 carried out by the government of the state, which resulted in the minting of round coins. Until this period, the country's monetary units had either an oval or a rectangular shape and were issued by various feudal centers. The fate that the currency of Japan has undergone in a relatively short period of its existence has been quite difficult and has had a significant number of failures,related to foreign policy factors. However, the hardworking population of the Land of the Rising Sun each time brought the national monetary unit to the leading trading positions of the international economic system. In the period from 1958 to 1972, the currency of Japan did not function as a system of exchange of values both within the state and abroad

outside. Its place was occupied by the US dollar for 14 years in a row. During this time, the country's leadership formed a clear financial strategy and carefully prepared a springboard for the introduction of a national value exchange system into the world economy, which soon became the third largest reserve currency in the modern world. The yen is denoted by the symbol, similar to the Chinese yuan. Also, the national Japanese currency has the cipher of the international organization for standardization ISO 4217 and bank code JPY.

Currency of Japan - exchange rate and denomination

Today, the Land of the Rising Sun uses national banknotes in denominations of 1000, 2000, 5000, 10000 yen, as well as monetary units in denominations of 1, 5, 10, 50, 100 and 500 yen. Although the Japanese currency and

is a fairly significant subject of the international Forex market, but the purchasing power of one unit is very low. This is due to the fact that the Japanese currency is one of the main elements of a set of measures to protect domestic production. The exchange rate against the ruble of this monetary unit in connection with the current development strategyentrepreneurship of the Land of the Rising Sun is also low and amounts to 33 kopecks per yen. This specificity gives Japanese manufacturers favorable price advantages in the market of goods and services. In order to maintain an artificially low exchange rate of the yen, Japanese financial institutions are constantly conducting an intervention monetary policy that is quite successful for the domestic economy and quite aggressive for competitors of Japanese products.