Money Mover Country Report - Japan

Posted on the 23rd February 2017 by Dorianne Sager in Country Reports

About

From the frenetic pace and bright lights of Shinjuku in downtown Tokyo, to the serene, contemplative nature of one of its many Zen gardens, Japan is a study in contrasts. It’s a country that has over 1500 earthquakes a year, yet built the world’s tallest broadcasting tower and quake-proofed it using a design inspired by a 1400 year-old pagoda. It’s a country that can set off an international gaming craze where people of all ages race through cities and countrysides looking for creatures based on Japanese mythology. In Japan, ancient traditions and modern technology can blend as harmoniously as matcha and water in a tea ceremony.

Known as the Land of the Rising Sun, Japan is a country of islands - 6,852 of them in fact – although the four main islands are Honshu in the centre, Hokkaido to the north and Shikoku and Kyushu to the south.  In 1854, after two centuries of seclusion from the West and almost 700 years of military dictatorship by the Shogun, Japan’s doors were forced open to the rest of the world by American Commodore Matthew Perry. The end of Japan’s seclusion ushered in an unprecedented rise in industrialization and militarization. During this time, Japan rapidly established itself as an Empire and a military superpower until its occupation by the American Allied forces after WWII.

After the Occupation was over in 1952, Japan was no longer an Empire but a democratic state and enjoyed a post-war period of rapid economic growth and technological advancement. Today, with its memberships in the UN, the OECD and the G20; successful companies like Nintendo; and cultural phenomena like manga and anime, Japan has once again emerged as a superpower - but this time the warriors that reign supreme are not called shoguns…they’re called Super Mario Brothers.

Trade and Industry

Japan is the world’s third largest economy and the third largest automobile manufacturing country. It is ranked as one of the most innovative nations in the world, particularly in electronics and automotive engineering and science and technology. Japan also boasts the largest electronics goods industry, according to the International Federation of Robotics, Japan owns more than 20% of the world’s industrial robots. And, given the country’s incredibly high literacy rate, it’s no wonder that it is has produced twenty-two Nobel laureates in the areas of either physics, chemistry and medicine, as well as three Fields medalists.

The last few decades have seen Japan fighting deflation as it struggled to regain the growth it enjoyed during the 60-80’s, dubbed the “post-war economic miracle.” However, Focus Economics reports that Japan ended 2016 on a strong footing and is forecasted to continue growing based on rising wages, improved business sentiment a weak yen and prime minister Shinzo Abe’s reform policies that aim to improve Japan’s prospects by increasing competition, reforming labor markets and expanding trade partnerships.

Exports

Japan’s main export markets are China, the US, South Korea, Thailand and Hong Kong. Its main exports are cars, computers and electronic devices.

Imports

Japan's main import markets are China, the US, Australia, Saudi Arabia, United Arab Emirates, South Korea and Qatar. Its main imports are mainly commodities, the main one being petroleum, followed by natural gas, coal, clothing and semiconductors.

Currency Overview 

The yen (JPY) which translates as “round object” is the official currency of Japan. It was introduced by the Meiji government in 1871 and is now the third most traded currency in the foreign exchange market after the United States dollar and the euro. The yen is also widely used as a reserve currency after the U.S. dollar, the euro, and the pound sterling.

Currency Pairs

The yen is one of the world’s major currencies. The USD to JPY currency pair is the second most traded pair with a daily trade volume of nearly 20% of the entire FX market.

The most common yen minor currency pairs or major crosses are EUR to JPY, GBP to JPY, AUD to JPY, NZD to JPY, CAD to JPY and CHF to JPY.

Making payments

Japan is a low risk country and considered stable, both politically and economically.  There are no known issues with making payments to Japan.

Types of payments 

All payments are sent via SWIFT and although we can send all supported currencies to Japan, the majority of Money Mover customers send yen.

Payment information

We can dispatch funds the following day for payments in yen to Japan as long as we receive funds prior to the cut off time of 14:00 (GMT).

We provide flexible payments for the following yen currency pairs:

Other reports and articles you might be interested in:

• Money Mover Country Report - South Africa
• Money Mover Country Report - Spain
• The Challenges and Opportunities presented by Brexit

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