Currency in Japan: A Complete Guide

This content was last updated on 17.03.2024 15:13

Japan is an archipelago located off the coast of Southeast Asia, comprised of thousands of islands. Due to limited agricultural land, Japan isn't particularly rich in natural resources, but it is a powerhouse in terms of industry. With a population of 127 million, Japan ranks among the world's top 10 most populous countries and boasts the title of the third-largest economy globally.

Have you ever wondered about the currency of Japan, which holds a very important position in the world economy? In this article, we're examining the currency of Japan and answering some questions about the Japanese currency.

What is the Currency of Japan

The currency of Japan is Yen.

1 Yen = 100 "Sen", but the "Sen" unit is no longer used today.

The Japanese Yen is one of the most used currencies after the American Dollar, Euro and British Pound and is widely used as a reserve currency in the world.

The symbol "¥" is used for the symbol of the Japanese Yen with the international abbreviation code "JPY".

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Japanese Yen and Its Position in World Markets

The Japanese Yen is an exchange rate closely followed by the central banks of many countries in the world. Yen has an important position in the world market. The Japanese Yen is a currency that can show instant changes. The developments affecting the world market, the situation of the country, the balance of payments, foreign trade, economic decisions and their effects on the market can cause fluctuations in the prices of the Japanese Yen.

Since it is one of the most used currencies in the world, “How much is 1 Yen to USD”, “How Much Is Japanese Yen?” Such questions are among the topics that are curious. These questions have been asked a lot, especially lately.

There are 6 coins for the Japanese yen. The coins are as follows;

• 1 ¥
• 5 ¥
• 10 ¥
• 50 ¥
• 100 ¥
• 500 ¥

There are 4 paper notes for the Japanese yen. Paper banknotes are as follows;

• 1,000 ¥
• 2,000 ¥
• 5,000 ¥
• 10,000 ¥

Japanese Yen - Euro, Dollar Exchange Rate

As of December 2021, the situation of the Japanese Yen against various currencies is as follows.

• 1 US dollar is equal to 114 Japanese Yen.
• 1 Euro is equal to 129 Japanese Yen.
• 1 Turkish Lira is equal to 10.40 Japanese Yen.

Why is the Japanese Yen Worthless

Japan is a country with a national income of 5.3 trillion dollars as of 2021. This makes the country the third largest economy in the world.

Japan is a great power in the fields of commerce and industry, but its currencies are extremely worthless against the dollar.

Of course, it is remarkable that the currency of such an economically strong country is worthless.

The Japanese Yen is actually an extremely interesting coin. Today, 1 Japanese Yen is equivalent to 0.0087 US dollars. (1 US dollar is approximately 114 Yen)

The fact that the yen is so worthless is due to a process stemming from the country's economic policy. Having a highly developed economy, Japan voluntarily keeps the value of its currency low in order to stand out from its strong international rivals such as the USA, the UK and the European Union countries. The low yen creates a situation that supports Japanese exports and puts pressure on imports. In the face of this developing situation, they do not have any problems in terms of current account balance and current account deficit, and the economic cycle continues to operate in this way.