What is JPY?
JPY is the monetary abbreviation or currency symbol of the Japanese yen (JPY), the national currency of Japan and the Republic of the Union of Myanmar. The yen is made up of 100 sen or 1000 rin and is often presented with the symbol ¥. The Meiji government initially introduced the yen as a measure of the country’s economic modernization.
After the US dollar (USD) and the euro (EUR), the Japanese yen is the most traded currency on the foreign exchange market (forex). The Japanese yen is also widely used as a reserve currency after the US dollar, the euro and the British pound (GBP).
- JPY is the abbreviation for the currency or the currency symbol of the Japanese yen (JPY), the currency of Japan.
- The Japanese yen is also widely used as a reserve currency after the US dollar, the euro and the British pound.
- The Bank of Japan (BoJ), the central bank of Japan, is responsible for encouraging growth and minimizing inflation.
The history of the Japanese yen
In May 1971, the yen became the official currency when the Meiji government finalized its adoption. The first circulation of the yen took place in 1872 when it replaced the mon currency of the Edo period of Japan. Silver lost most of its value at the end of World War II and was pegged to the U.S. dollar in 1949.
When the United States abandoned the gold standard in 1971, the yen was devalued again. Since 1973, the yen has been a floating currency, which goes up and down against the dollar with international exchange rates. The yen, which is basically a unit of the US dollar, comes from Spanish eight coins, a term common in the American colonies for silver coins worth about one ounce.
Japan has a strong economy with a solid industrial base. The country also has many technologically advanced companies, including auto manufacturing, machinery, steel and non-ferrous metals, electronics, chemicals, shipping, textiles and processed foods. According to Oanda, a major currency data company, 13% of Japanese land is devoted to agriculture. In addition, Japan accounts for almost 15% of the world’s fish catch, after China. “Satatista.com” reports that the unemployment rate in Japan was 2.5% in January 2019.
The strengthening of the yen
The Bank of Japan (BoJ), the central bank of Japan, is responsible for encouraging growth and minimizing inflation. Deflation, however, has been a problem for the country for many years, and the BOJ has pursued a policy of low rates to stimulate demand and economic growth.
Example from the real world
In 2020, the yen was one of the best performing currencies of the year in CNBC. It had to exceed the US dollar in terms of strength. Japan’s performance in 2020 was solid due to global demand for its exports, government spending and cash from the Bank of Japan. The weakening of the US dollar and the growth of the Japanese economy are also cited as the reasons for the appreciation of the yen. Morgan Stanley analysts said the yen was a better prospect for investing as a safe haven against the US dollar.