The Japanese Yen is the official currency Japan since 1870, through the new Meiji government. It was established straight after the release of the New Currency Act of 1871. It is one of the most widely used reserve currencies after the US. Dollar and the Euro. Its ISO 4217 codes for the Yen are 392 and JPY.
After World War 2, the value of the Japanese Yen was fixed at 360 Yen per US. Dollar through a plan by the United States of America, related to the Bretton Woods system in an attempt to stabilize the prices in the Japanese economy. This was maintained until 1971, when the Americans abandoned the system. Straight after this, they imposed a 10 percent surcharge towards imports, thus prompting the floating of international exchange rates in 1973. This greatly affected the Yen since imports had a high cost, while Japanese exports received little. The next 30 years showed a gradual rise in value of the Japanese Yen, despite events such as the 1973 and 1979 oil crises. 1985 and the Plaza Accord agreement helped the Yen double in value to 123 Yen per US. Dollar in 1992. April 1995 showed a further strengthened Yen at 80 Yen per Dollar, which made it nearly the same size as the US. economy. Despite being part of the top 5 countries with the most widely used reserve currencies, Japan is currently on the decline as a reserve currency over the past decade.
The Japanese economy is amongst the strongest in the world, with the United States of America having a higher Gross National Product (GNP). Its main imports include motor vehicles, electronics and computers. The United States is its most important trading partner and also trades with Taiwan, South Korea, Hong Kong, China and Singapore. Major Japanese industry comprises of manufacturing, construction, distribution, real estate and services. The goods that Japan relies on through import include oil, foodstuffs and wood, supplied mostly by the United States, China, Indonesia, South Korea and Australia.
Forextradinghq is dedicated to bringing the most important, up to date news regarding Japan’s economic and financial condition and also its major counterparts in the ‘Major Currencies’ section of the website.
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