2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
As you know, there are almost as many types of currency in the world as there are sovereign states on Earth. And for almost every nation, 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 epoch-making changes in the Land of the Rising Sun, is no exception.
When did the yen appear?
The monetary system of the island state before the Meiji era consisted of various types of valuable funds: these were both paper notes and coins made of various precious metals (copper, silver and gold). Moreover, both the signs of the central administration 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 some reformist changes in the country during the Meiji period (in 1869). Then the government adopted a monetary system withdecimal, in which one yen was 100 sen, and the unit of the latter could be divided into 10 rin.
It is worth noting that the monetary unit of Japan for the period of adoption was immediately tied to the world gold standard. The first yen coins were equal to 15 mg of gold, and silver ones were forged from 24.3 g. These signs were round, which differed from previous money (which produced various shapes: square, oval, rectangular, and so on), as a result of which they received their the name "yen" from the character 円 (round).
Monetary policy
With the establishment of a standard currency, the Japanese government entered into the "sterling bloc", which marked the dependence of its banknotes on Britain in the share of the world economy. In 1933, the Land of the Rising Sun had to abandon the gold standard, and after that the exchange rate already influenced the amount of this precious metal, which the Japanese currency had in its composition. In the 40s of the 20th century, the unstable state of the economy and military operations in 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 nation decided to refocus on the US dollar.
In 1953, the IMF officially approved the parity of the Japanese currency, which was equal to 2.5 mg of gold. Thus, the banknote 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 bills up to 10,000 and coins in 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 is in Japan (that is, what it looks like), we will provide the following information.
Coins of 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, sakura and chrysanthemum).
The 10 and 5 yen coins are made of bronze and feature images of a Buddhist monastery and an ear of rice, respectively. The 1 yen is made of aluminum and has a sapling symbol on the front.
Paper banknotes contain portraits of the most important people in Japan. These are, as a rule, figures who have received world fame in the field of literature, enlightenment and other fields. For example, 1000 yen is decorated with a portrait of Natsume Soseki. Let us also recall the name of the monetary unit of Japan in the system of bank codes - JPY.
Today, this type of currency has lost some weight in the global economy due to a strong earthquake, which caused great losses, as well as a crisis situation that has developed in the planet's community. However, the yen continues to be used on stock exchanges, as it has a more stable position compared to other currencies.
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