JPY

The Japanese yen is the official currency of Japan. The official name is yen (Japanese: 円〔元〕／えん〔ゑん〕, Japanese Romaji: Yen). The full name is Japanese yen, also known as Japanese yen and Japanese currency. The currency symbol is ¥ ( Same as the RMB, if the RMB and the Japanese yen appear at the same time, add CNY and JPY respectively before "¥" to distinguish them). The currency code of the International Organization for Standardization ISO 4217 is JPY12.

History of JPY

The history of the yen can be traced back to 1871, when the Japanese government promulgated a new currency law to unify the original multiple currencies into a currency based on the gold standard, the yen. The name of the yen comes from ancient Chinese copper coins, which are round coins. The smallest unit of Japanese yen is 1/100 yen, which is called 銭 (せん), but it is no longer used. The smallest unit currently in circulation is 1/10 of a circle, which is called centimeter (りん).

Issuance and Circulation of JPY

The issuing institution of the Japanese yen is the Bank of Japan, which is also the central bank of Japan. The Bank of Japan is responsible for formulating and implementing monetary policy, as well as supervising and managing the financial system. The Bank of Japan's goals are to maintain price and financial stability and promote economic development.

There are currently four denominations of Japanese yen banknotes in circulation: 1,000, 2,000, 5,000 and 10,000 yen, and six denominations of coins: 1, 5, 10, 50, 100 and 500 yen. Each banknote and coin has its own specific design and security measures to prevent counterfeiting and counterfeiting. Portraits or patterns of famous people or cultural heritage are printed on banknotes. For example, the 1,000-yen banknote features the Meiji era writer Natsume Soseki and Mount Fuji; the 2,000-yen banknote features the Heian era female writer Murasaki Shikibu and Okinawa Prefecture Shuri Castle; The 5,000-yen note features female educator Tsuda Umeko and Momiji during the Meiji era; the 10,000-yen note features Meiji-era politician Fukuzawa Yukichi and Phoenix. Coins are printed with different numbers or symbols to represent the denomination, and different plants or animals to represent the year or region. For example, the 1 yuan coin is printed with cherry blossoms; the 5 yuan coin is printed with green ears; the 10 yuan coin is printed with chrysanthemums; the 50 yuan coin is printed with chrysanthemums; The 100-yen coin features chrysanthemums and a five-pointed star; the 100-yen coin features cherry blossoms and the Tokyo Metropolitan Assembly Building; and the 500-yen coin features chrysanthemums and Yasuda Palace.

JPY Exchange Rate

The exchange rate of the yen refers to the exchange ratio between the yen and other currencies, that is, how many yen can be exchanged for one currency, or how many other currencies can be exchanged for one yen. The exchange rate of the Japanese yen is affected by many factors, such as supply and demand, interest rate differences, inflation, economic growth, political risks, etc. The exchange rate of the Japanese yen will also fluctuate with market changes, so it needs to be constantly updated and adjusted.

The exchange rate of the Japanese yen can be divided into cash exchange rate and spot exchange rate. Cash exchange rate refers to the exchange rate used when exchanging cash at banks or other financial institutions. There is usually a certain handling fee or spread. The spot rate refers to the exchange rate used when conducting transactions in the foreign exchange market, and is usually closer to the market price than the cash rate.

The exchange rate of the Japanese yen can be expressed in different ways, such as direct representation and indirect representation. Direct representation refers to how many yen are represented by one unit of foreign currency, for example, 1 US dollar = 110.5 yen. Indirect representation refers to how much foreign currency is represented by one unit of yen, for example, 1 yen = 0.009 US dollars. Different countries or regions may use different notations, so when checking or comparing Japanese yen exchange rates, you need to pay attention to conversion or unification of units.

JPY Trading

The Japanese yen is the financing currency in carry trade and also has the properties of a safe-haven currency. A carry trade is an investment strategy that involves borrowing a currency with a low interest rate and then investing in a currency with a high interest rate, thereby obtaining interest income or capital appreciation. Due to the long-term low interest rate policy implemented by the Bank of Japan, the yen has become a currency that many investors borrow and then convert into other currencies for investment. Such an operation would cause the yen to depreciate and other currencies to appreciate. However, when there is market turmoil or risk, investors will convert other currencies back to the yen to reduce losses or recover principal. Such an operation would cause the yen to appreciate and other currencies to depreciate. Therefore, the Japanese yen has the property of a safe-haven currency in the market, which means that when market uncertainty increases, the Japanese yen will be favored by investors.