Japanese Yen

The standard and official currency used today in the Japanese economy is the Japanese Yen. It has been so named because in the Japanese language yen means a circle and the Japanese Yen currency had originally developed from the use of coins. Earlier these coins would refer to the Sen currency but the sen is now outdated and the new Japanese Yen currency has become more popular. 100 Sen make up one Yen and coins in circulation today are of 1 Yen, 5 Yen, 10 Yen, 50 Yen, 100 Yen and 500 Yen valuation. The Yen currency also encourages the use of bills and in the Japanese economy bills are used for higher economic value. They are of the valuation of 1000 Yen, 2000 Yen, 5000 Yen and 10000 Yen. Coins up to the valuation of 500 Yen are accepted by vending machines throughout Japan but the older machines refuse to accept bills of 5000 and 10000 Yen valuation.

The Japanese Yen is denoted by the symbol JPY. The Japanese Yen first came into circulation in the Japanese economy during the Meiji Restoration period and the motive behind this change in currency was the fact that the earlier system of currency proved to be very complicated. The Japanese Yen was officially introduced into the economy by the New Currency Act of 1871. From 1949 till 1971 the Japanese Yen retained a good valuation in the stock market. But after that with the collapse of the Bretton Woods system the valuation of the Yen began to float and this trend continues to this day.

5 Yen coins in the Japanese Yen currency system have a hole in between and so do the 50 Yen coins. This idea of having holes in between coins originated in ancient times when men used to carry coins bound with strings through the holes pierced in the middle of these coins. Coins are more popular in the Japanese economy than bills although 500 and 1000 Yen bills are also very much in use.