The Japanese Yen is the 3rd most traded global currency in the foreign exchange markets after the US dollar and the Euro. The usage of the Yen in trade accounts is about 16% of foreign currency trade turnover, and this figure was recorded in a survey conducted in 2019, compared with more than 88.3% for the USD and 32.3% for the Euro currency. It has a long history and was introduced to the nation by the Meiji Government after the mon currency belonging to the Tokugawa Era was abolished in Japan.
Kavan Choksi- The role of the Japanese Yen and its role in international trading
Kavan Choksi is a business expert and wealth management consultant in Japan known for his expertise in finance and economics. According to him, the Yen is the third global currency after the US dollar, and the Euro as the denomination of foreign exchange reserves. These reserves are held in dollars, and it is more than those in the Yen currency. This figure is more than tenfold, as recorded in the first quarter of 2021. The current account of Japan is a surplus that arises from its role as a critical net exporter and restricts the Yen’s accumulation by the central banks of foreign nations.
Denominations of the Japanese Yen scheduled for re-design in Japan before 2024
Coins worth 500, 100, 50, 10,5, and 1 denominations of the Yen are currently in circulation along with 1000, 2000,5000, and 10,000 banknotes. The Yen count in the nation sums in the multiples of 10,000 Yen over 1,000 like in the West with US Dollars or Euros.
There are some Yen banknote denominations in Japan that have been shortlisted for a new design within 2024. The new 10,000 Yen bill will feature the Japanese industrialist Elichi Shibusawa who was an iconic figure in the 19th and 20th centuries. He is known as the “Father of Japanese Capitalism.”
The Yen bill of 5000 will feature Umeko Tsuda, who established the Tsuda University located in Tokyo, pioneering the education of women in Japan. The 1000 Yen bill is going to honor the famous medical scientist Shibasaburo Kitasato. These new Yen banknotes will have 3D holograms.
Trading with Japanese Yen
If you are a trader who can take the risk, you can opt for trading with the Japanese Yen in the forex market. During times of economic stress, the Yen’s value fluctuates. Experts advise that only those traders who have experience and sound knowledge of the Forex markets should opt for trading with the Yen as it requires expertise to leverage its benefits for profits.
Business and finance expert Kavan Choksi states that the best place for you to buy the Japanese Yen is at large bank branches of the Bank of America, Wells Fargo, or Chase. You also have the option to purchase foreign currency at airports in Japan; however, here, these exchange outlets will feature more selling or buying spreads as the cost of the location is convenient for its trading.
