As you know, in the world there are almost as many types of currency as there are sovereign states on Earth. And in 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 represented various types of valuable funds: it was both paper notes and coins from various precious metals (copper, silver and gold). Moreover, both central government signs and the currency of individual principalities functioned on an equal level. This money circulation system was complex and was called Zen.
The modern monetary unit of Japan appeared after some reform changes in the country during the Meiji period (in 1869). Then the government adopted a monetary system with a decimal calculation, 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 the silver forged from 24.3 g. These signs were round, which was how they differed from previous money (which issued various shapes: square, oval, rectangular and so on), as a result of which they got their the name "yen" from the character 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 in the share of the global 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 included the monetary unit of Japan. 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 reorient to 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 currency of the Land of the Rising Sun was recognized by the world community. The yen was gradually increasing, and it became a convertible currency.
Money symbols
Modern payment methods in Japan are paper bills with a face value of up to 10,000 and coins in denominations of 1, 10 and 50, as well as 100 and 500 yen. Preexisting small signs, such as rin and sen, were abolished. If the reader is interested in the question of what currency in Japan (that is, what it looks like), we give the following information.
Coins in denominations of 500, 100 and 50 yen are made of nickel alloy, on the reverse side of these values are flowers that are of particular importance to the inhabitants of this country (paulownia, sakura 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. Aluminum is used for 1 yen; the seedling symbol adorns the front side.
Paper bills contain portraits of the most significant persons in Japan. These are, as a rule, figures who have gained worldwide fame in the fields of literature, enlightenment, and other fields. For example, 1000 yen adorns the portrait of Natsume Soseki. Recall also about the name of the currency in Japan in the system of bank codes - JPY.
To date, this type of currency has lost a bit of weight in the global economy due to a strong earthquake, resulting in large losses, as well as the crisis 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.