13 Facts About Japanese yen

The Japanese yen replaced the previous Tokugawa coinage as well as the various hansatsu paper currencies issued by feudal han.

The Japanese yen had appreciated to a peak of ¥271 per US$ in 1973, then underwent periods of depreciation and appreciation due to the 1973 oil crisis, arriving at a value of ¥227 per US$ by 1980.

Since 1973, the Japanese government has maintained a policy of currency intervention, so the yen is under a "dirty float" regime.

The Japanese government focused on a competitive export market, and tried to ensure a low exchange rate for the yen through a trade surplus.

The Bank of Japan maintains a policy of zero to near-zero interest rates and the Japanese yen government has previously had a strict anti-inflation policy.

Japanese yen exports were costing too little in international markets, and imports from abroad were costing the Japanese yen too much.

From its average of ¥239 per US$ in 1985, the Japanese yen rose to a peak of ¥128 in 1988, virtually doubling its value relative to the dollar.

In 1957, silver 100-Japanese yen pieces were introduced, followed by the holed 50-Japanese yen coin in 1959.

Alongside with the 5-Swiss franc coin, the 500-Japanese yen coin is one of the highest-valued coin to be used regularly in the world, with value of US$4.

Issuance of Japanese yen banknotes began in 1872, two years after the currency was introduced.

Relative value of the Japanese yen is determined in foreign exchange markets by the economic forces of supply and demand.

The demand for the Japanese yen is governed by the desire of foreigners to buy goods and services in Japan and by their interest in investing in Japan.

Low interest rates combined with a ready liquidity for the Japanese yen prompted investors to borrow money in Japan and invest it in other countries.