History of Yen monetary unit

The history of the Japanese Yen, as a monetary unit, is rich and spans several centuries. Here's an overview:

Origins: The concept of the Yen as a unit of currency dates back to the 19th century during the Meiji Restoration (1868-1912). Before this period, Japan used a variety of currencies, including the Mon, the Koban, and the Ryō, which were gold, silver, or copper coins issued by feudal domains or the shogunate.

Adoption of the Yen: In 1871, the Meiji government established the Yen as the official currency of Japan through the passage of the New Currency Act. The Yen was based on the decimal system, with 1 Yen divided into 100 Sen. The new currency aimed to modernize Japan's monetary system and facilitate international trade.

Early Yen Coins and Banknotes: The first Yen coins were minted in 1871, and paper banknotes followed in 1872. Initially, these coins and banknotes were minted and issued in various denominations, including 1 Yen, 5 Yen, 10 Yen, and higher values.

Yen During World War II: During World War II, Japan's economy was heavily influenced by the war effort. The government issued special wartime currency, including emergency banknotes and coins made from alternative metals due to shortages of precious metals.

Post-War Reforms: After Japan's defeat in World War II, significant economic reforms were implemented. In 1949, the Yen was pegged to the US Dollar under the Bretton Woods system, leading to stability in the currency's value and facilitating Japan's post-war economic recovery.

Modern Yen: The Yen has continued to evolve in the post-war period. In 1953, the Yen was revalued, with 1 Yen being equal to 100 old Yen. The modern Yen is issued by the Bank of Japan (BOJ) and is available in both coins and banknotes, with denominations ranging from 1 Yen to 10,000 Yen.

Yen as a Reserve Currency: The Yen is one of the world's major reserve currencies and is widely used in international finance and trade. It is also one of the most traded currencies in the foreign exchange market, known as the forex market.

Impact of Economic Policies: The value of the Yen has been influenced by various economic policies implemented by the Japanese government and the BOJ. These policies include monetary easing, quantitative easing, and efforts to combat deflation and stimulate economic growth.