The yen is the official currency of Japan, used since the modern yen was introduced in 1871.
Japan adopted the yen during the Meiji era as part of a broader effort to modernize its financial and political institutions. The New Currency Act of 1871 created a decimal currency system modeled partly on European monetary systems. The word “yen” means “round object,” reflecting the shape of coins; in Japanese, the currency is written 円 and pronounced en.
The yen is divided into 100 sen in the traditional accounting system, although sen coins are no longer used in everyday transactions. Banknotes are issued by the Bank of Japan, while coins are issued by the Japanese government. Common coins range from 1 to 500 yen, and banknotes have featured prominent historical and cultural figures.
The yen became an important international currency as Japan industrialized and expanded its global trade. Its symbol is usually written ¥, though the same symbol can also represent the Chinese yuan in some contexts. Modern Japanese prices and financial markets use yen as their basic unit.