The Japanese yen (JPY) is the official currency of Japan. It is considered to be one of the major currencies in the world and is paired with all other major currencies including U.S. dollar (USD), the British pound sterling (GBP), Swiss franc (CHF), euro (EUR), Australian dollar (AUD) and Canadian dollar (CAD).
The Japanese yen has had a wild history since it dropped its peg to the U.S. dollar after World War II. The explosive growth of the Japanese economy from those post war years to the late 1980s saw the currency skyrocket to unsustainable highs. Since that time, the yen has stabilized despite Japan having one of the worst debt to GDP ratios in the world. Japan’s economy is unique in that the vast majority of Japanese debt is held by Japanese citizens, so there seems to be much less pressure on the currency compared to other nations with similar balance sheets.
Japan is heavily dependent on exports. The bank of Japan has a history of intervening when the value of the yen creeps too high against other major currencies – particularly the U.S. dollar (USD).
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