Kavan Choksi on the History and Facts of The Japanese Yen

After the US and the Euro in the world, the Yen of Japan is the third-valued currency in the world. It has an amazing history, and it was launched in 1871. It has evolved ever since, and the term “Yen” means round object. The Meiji government adopted it officially after the New Currency Act of 1871 was passed to stabilize the country’s monetary situation. It replaced the “mon” currency used in the Tokugawa Era. The Mon currency became devalued in 1873 when silver lost its value. It was made from copper. The Yen lost a lot of its value because of the above when compared to the dollars of the USA and Canada (these nations embraced the gold standard)

Kavan Choksi – Interesting facts to know about the Yen currency 

Kavan Choksi is a leading business expert with valuable knowledge and expertise in finance and investments. He is also fond of photography and travel. According to him, the Yen is the third most traded currency in the world. It is a reserve currency after the US dollar. Lately, the Central Japanese Bank has been aiming to get the 2% goal to align the pandemic’s economic impact after 2020.

The abbreviation for the Yen is JPY, and it is comprised of 1,000 rin or 100 sen. It has a symbol like the capital Y with two horizontal lines across its center like dashes. Those investors who wish to buy the Yen can get Yen ETFs, or they have the option to make investments in the Nikkei 225 Stock Average. 

Facts of the Japanese Yen: –

• The weight of the Yen coin is one gram. 
• The image on the 5000 Yen banknote on the reverse side has the painting of The Kakitsubata Flowers made by Ogata Korin.
• Higher denominations of the Yen are generally counted in multiples of 10,000, wherein countries in the West are counted in thousands.

The power of the Japanese Yen in the world 

The Japanese Yen was a powerful currency in the past because the nation’s economy was strong. The volume of exports in the country and more than its imports has made the country the biggest creditor nation in the globe. 

The ups and downs of the Yen over the years 

Like every currency, the Japanese also went through some ups and downs. In 1897, its value was hardly US 50 cents. In that year, the nation embraced the gold standard like the other nations, and this step increased the value of the Yen currency. In 1953, the sen and the rin stopped their circulation in the country. 

Wrapping up

According to Kavan Choksi, the Yen in 1949 was pegged to the US dollar. When the US moved away from the Gold Standard in the year 1971, its value dipped again, and since 1973, it became a floating currency because of the oil crisis that made the Yen fall and rises against the dollar of the USA.