Currency of Japan is

The correct answer is Yen.

Key Points

• The official currency of Japan is the Yen (¥), represented by the ISO code JPY.
• The Yen was adopted as Japan’s official currency in 1871 under the New Currency Act, replacing the previous Tokugawa coinage system.
• It is one of the most traded currencies in the world and is widely used in international trade and foreign exchange markets.
• The Yen is issued and regulated by the Bank of Japan (BoJ), the country’s central bank.
• The currency is available in both coins (1, 5, 10, 50, 100, 500 Yen) and banknotes (1,000, 5,000, 10,000 Yen).

Additional Information

• History of the Yen:
  • The term "Yen" translates to "round object" or "circle" in Japanese, reflecting the shape of coins.
  • The Yen was introduced as part of the Meiji government’s modernization efforts to unify and stabilize the economy.
• Bank of Japan (BoJ):
  • Established in 1882, the BoJ is Japan's central bank responsible for issuing the Yen and implementing monetary policy.
  • The BoJ also plays a critical role in managing inflation and ensuring financial stability in Japan.
• Yen in Global Trade:
  • The Yen is one of the world's reserve currencies, alongside the US Dollar, Euro, and British Pound.
  • It is widely used in foreign exchange markets and is considered a "safe-haven currency" during economic uncertainty.
• Economic Importance:
  • Japan is the world’s third-largest economy, and the Yen reflects the nation’s economic strength and global influence.
  • Fluctuations in the Yen's value can significantly affect international markets, especially in the Asia-Pacific region.