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The Yen is the name of the legal tender of Japan, and after the US dollar and the Euro, it is the most valuable currency in the world. If you trade in the forex market or are making plans to visit Japan, being familiar with this currency will make your trading or stay more worthwhile. Investors in the forex market should know about its origins and history to trade well. On the other hand, travelers can learn exciting facts about the Yen when using it to buy products and services in Japan.
Kavan Choksi- Delving into the origins and the history of the Japanese Yen
Kavan Choksi is a leading entrepreneur and expert in business and finance. According to him, there are some currencies across the globe that have an old and exciting history, the Yen being one of them. It derived its name from being round in shape; the term Yen in Japanese means “round object,” and it was officially the legal tender of the Meiji Government under the New Currency Act of 1871. It was introduced in the market with the goal of stabilizing the nation’s monetary situation at that time.
Removal of the complex monetary system of the Tokugawa Era
The emergence of the Yen replaced the ancient monetary system being followed since the Tokugawa Era. It was highly complex and was based on Mon, which was a copper-based coin. In 1873, the silver was devalued, and so the Yen lost its value compared to the US and Canadian dollars that adopted the Gold Standard. Later in 1897, the Yen had a matter of just 50 cents (USA), and it was in the same year that Japan embraced the gold standard, boosting its value over time. During that period, the rin and the sen were in circulation. However, they were removed in 1953.
Its evolution in Japan with time
The value of the Yen improved with time, and its print and design are so unique that they cannot be counterfeited. One cannot scan or print this currency note, and the Government of Japan makes a constant endeavor to protect it from being counterfeited by criminals with the use of holograms, special intaglio ink, and other features. Another unique trait in the Yen currency note is the use of luminescent ink that makes it glow when you place it underneath any UV light.
Rise in value
According to business and finance expert Kavan Choksi, the Japanese Yen has been stable in the last few decades. However, it has seen some highs and lows in value in the market. It is the third most potent currency in the globe, and as Japan is entering Phase 3 of its industrialization plans, more investors across the world are interested in building companies in the nation.
However, when it comes to investments of any kind, businesses and individuals must have a plan for financial risk management in place. This plan should focus on both short and long-term goals to prevent risks and protect their interests in any venture they undertake in the nation.
