by Carol Larsson

Created on: February 11, 2010   Last Updated: February 14, 2010

What is the currency of Japan?     It is the Yen.

Japan was one of the earliest countries to use money, with the use of Chinese coins as far back as the Yayoi Period 300BC- 300AD. In 708 AD, Japan issued its own series of twelve copper coins (Kochosen) over a 250-year period.  The Japanese Court wanted to spread the use of these coins throughout the whole country but this did not go very well.

By the time, Japan entered the Hein Period (794-1185) the economic situation had declined. The court then issued different coins over a very short time spell and changed the rate of currency by making one new coin worth ten old coins. There was then a shortage of copper and the size and quality of the coins deteriorated.
Counterfeit coins became such a problem that the issuing organization lost its power.
Coins were not officially issued in Japan for the next six hundred years.
During this time people, either used coins issued in China along side the Kochosen coins.

By the first half of the 17th century, coins were being made in several places in Japan but they were not made by a single issuing authority and differed in size and weight from one another and they were not round but were mostly oblong in shape.


The Meiji government decided to reform the currency, and move it away from the really complicated system, that was in place during the Edo Period (1603-1867). To move its currency to a modern system closely resembling the one used in European countries.

The Yen first appeared as the official unit of currency in Japan following the New Currency Act 1871.

The New Currency Act stipulated
1. The adoption of the decimal system.
2. Adoption of the gold standard.
3. The adoption of round stamped out gold and silver coins as in modern western countries.

The Japan Mint was established in Osaka, and the inaugural ceremony was held on April 4th 1871. It was established to supply coins with a uniformity of standard and quality.
 
The National Printing Bureau produces the bank notes as well as printing postal stamps, seals, government bonds etc.

During and after the Second World War the Japanese Yen lost a lot of its value and the country's financial system became unsound. Because of this in 1949, the Yen became fixed to the US Dollar while it regained its strength. In 1971, the Yen was moved to a floating exchange rate.

There are four denominations of bank notes 1,000 yen, 2,000 yen, 5,000 yen and 10,000 yen. The designs on the notes are

10,000 yen note
Front side:

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