2016-06-27 Mon

The Japanese adopted a new silver dollar coinage under the name of 'Yen'. This new currency was introduced in Japan by Meji Government in an Act signed on June 27, 1871.

The origin of Japanese currency can be traced to the Wu Zhu bronze coin of China, which was introduced under the Han Dynasty around 221 BC. However, it was no until the Meiji Restoration, simplified and centralised currency system was introduced. This led to the adoption of ‘Yen’ as national currency of Japan.

During early 1800s silver Spanish dollar coins dominated the Market of South East Asia as well as China and Japan. However, from mid 19th Century, they were replaced by new silver dollars of the new Latin American republics. The Chinese began minting Hong Kong silver dollar coins as their own currency.

However, they disapproved the new unfamiliar coinage and shifted back to familiar Mexican dollars and hence Japan achieved the Mint Machinery from Hong Kong. From now on, the gold standard was adopted and the round-shaped Yen replaced the previous gold and silver coinage.

The New Currency Act of 1871 stipulated the adoption of the decimal accounting system of Yen, Sen and Rin. The currency came to be known as “Yen” meaning a round object'. This official currency of Japan is the third most traded currency in the foreign exchange market after the United States dollar and the euro.