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International Payments

What currency is used in Japan

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Japan is a country with a rich cultural history, a treasure trove of natural resources, and is an epicentre of industrial and technological growth. Therefore, many tourists visit Japan every year from various countries, including the Great Britain.

If you want to know what currency is used in Japan, read on to learn more about Japan's official currency: the Japanese Yen (¥).

History of the Japanese Yen

The 19th-century Meiji Government first introduced the Japanese Yen as a part of their objective of modernising Japan. It was established as the official currency in 1871.

After World War 2, the exchange rate of JPY was fixed till 1971 to help stabilise Japan's economy. After that, the Japanese Yen faced multiple ups and downs throughout history, reaching its peak in 1995.

Today, despite its relatively low value, it enjoys the trust of the international forex market. Therefore, it is now the third most traded currency globally.

Note denominations of JPY

Till the end of WW2, various individual bodies issued the currency. Today, Japanese Yen banknotes are issued exclusively by the Bank of Japan. It has issued 5 series so far. The currently ongoing notes of Series E, introduced in 2004, have denominations of ¥1,000, ¥2,000, ¥5,000, and ¥10,000.

The finance ministry of Japan has designed a new series of notes for circulation in 2024. This series will feature only ¥1,000, ¥5,000, and ¥10,000 notes.

What countries use the Japanese Yen?

The Japanese Yen is the official currency of Japan. It is exclusively used for daily transactions only in Japan. However, the currency enjoys immense respect in the international foreign exchange market. It is the most traded currency globally after USD and the Euro. It is also famous as the third-largest reserve currency in use after USD and the Euro.

Where can you buy JPY?

You can buy Japanese Yen from a bank or a bureau de change. However, buying JPY from these sources may come with certain drawbacks, including:

Exchange rates are fixed for a day. So you may end up paying higher if you are buying when the exchange rate has fallen below the pre-set value.

These organisations often add several hidden charges to your order without clearly communicating it.

You have to go through lengthy procedures to exchange your money.

If you buy from banks or bureaus, you must physically visit the exchange location. Moreover, the convenience of online assistance is usually unavailable here.

Therefore, finding an online foreign currency exchange service provider is more beneficial. Also, online currency exchange providers offer comparatively lower rates since they do not have added expenses.

However, when buying currency online, ensure your chosen organisation is transparent with you regarding the charges involved.

Spending money in Japan

Japan is a highly popular tourist destination due to its cultural heritage, natural resources, and technological marvels. The Japanese society has also modelled itself accordingly. As a result, there are several amenities available for visitors. The typical expenses of a tourist in Japan can be as follows:

Taxi: Fares of a standard four-passenger cab usually start from 500 JPY for the first 2 km. It may go up by 80 to 90 JPY for every 300 to 400 m.

Meal for two: A dinner for two persons at a regular restaurant or roadside stall will cost between 500 and 1,000 JPY. A complete meal at a more standard diner is usually around 1,000 to 3,000 JPY.

Hotel room: Japan offers a wide variety of options when it comes to accommodations. Charges per person may range from 2,000 JPY in dormitories to over 50,000 JPY in sophisticated hotels.

Can you use an ATM in Japan?

While Japan has many ATMs, majority of them do not accept any credit or debit cards from outside the country. Therefore, considering the limited options of getting travel money after you visit the country, purchasing the Japanese Yen beforehand will be prudent.

Summary

Japan is a predominantly cash-based economy. However, most local ATMs may not accept foreign cards. Therefore, you should stock some Japanese Yen, the legal tender in Japan, before you visit the country. Now that you know what currency is used in Japan, buy your travel money from The Currency Club. Get the best exchange rates on the Japanese Yen against British Pounds from us!

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Disclaimer

We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available

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