The yen is Japan’s unit of money. It was first set as the unit in the New Currency Act of 1871. Banknotes are issued only by the Bank of Japan, founded in 1882.
Unit since 1871Bank of Japan
円Yen
First set as unit
New Currency Act, 1871
Bank of Japan founded
1882
First Bank of Japan note
old 10-yen note, 1885
Who issues notes
only the Bank of Japan
From the Ministry of Finance and the Bank of Japan.
The name yen
A law says that “the unit of the face value of money is the yen” (Act on Currency Units and Issuance of Coins, Article 2).
The yen was first set as the unit of money in the New Currency Act of 1871 (Meiji 4). The Ministry of Finance says no papers remain that show exactly why the name “yen” was chosen.
The Bank of Japan
In 1882 the Bank of Japan was founded as Japan’s only central bank, and the power to issue banknotes was brought together in it.
In 1885 it issued its first banknote, the old 10-yen note.
Today the Bank of Japan alone issues banknotes, under Article 46 of the Bank of Japan Act.
Think about it
Q1Why do you think a country wants only one bank to issue its banknotes?
Q2The reason for the name “yen” is not recorded. Where else could you look for clues?
Q3What is the unit of money in your country, and when did it start?
There is no single right answer. Talking it over with someone at home is a good way to learn.
Did you know? — No papers remain that show exactly why Japan’s money was named “yen”.