Introduction
The yen is the official currency of Japan and is used by over 127 million people in the country. It is known for its stability and is one of the most traded currencies in the world.
History
The yen has a long history dating back to the Meiji period when Japan adopted the modern monetary system. It has undergone several changes over the years, including being pegged to the gold standard and being devalued after World War II.
Characteristics
- Symbol: ¥
- Code: JPY
- Subunit: Sen
- Denominations: Coins and banknotes
Value
The value of the yen is determined by various factors such as inflation, interest rates, and economic indicators. It is often used as a safe-haven currency during times of economic uncertainty.
Examples
For example, if the exchange rate is 100 JPY to 1 USD, it means that one US dollar is equal to 100 Japanese yen. This exchange rate fluctuates based on market conditions and economic events.
Case Studies
In 2011, the yen reached an all-time high against the US dollar, causing concerns for Japanese exporters. The government intervened by selling yen to stabilize the currency and protect the economy.
Statistics
According to the Bank of Japan, there were approximately 105 trillion yen in circulation as of 2020. The yen is also a popular reserve currency held by central banks around the world.
