Convert your Japan Currency to Naira
Nigeria vs. Japan Economic Indicators
| ndicator | Nigeria | Japan |
|---|---|---|
| Interest Rates | 26.25% (May 2024) | 0.25% (Jul 2024) |
| Exchange Rates | NGN 1490/$ | JPY 146/$ (Japanese Yen) |
| Inflation Rate | 33.95% (May 2024) | 2.8% (Jun 2024) |
| Unemployment Rate | 5% | 2.5% (Jun 2024) |
| GDP Growth Rate | 2.85% (Dec 2023) | 0.8% (June 20224) |
| Savings Rate | 6.28% (March 2024) | 14.2% (2021) |
Sources: National Bureau of Statistics, CBN,, Statista
Discussion:
- Interest Rates: Nigeria has a significantly higher interest rate, likely due to factors like controlling inflation or attracting foreign investment. Japan’s interest rates are very low.
- Exchange Rates: The Nigerian Naira (NGN) is much weaker than the Japanese Yen (JPY). This makes Nigerian exports cheaper but imports from Japan more expensive.
- Inflation Rate: Nigeria has a much higher inflation rate, indicating a less stable price environment.
- Unemployment Rate: Japan has a significantly lower unemployment rate.
- GDP Growth Rate: Japan’s GDP growth has been slower in recent years, but its economy is still much larger than Nigeria’s.
- Savings Rate: Both countries have relatively high savings rates.
The Evolution of the Japanese Yen
Japan’s monetary journey began by adopting the Chinese Wu Zhu coin around 221 BC. In 708 AD, the country initiated its own coinage, introducing silver and copper Wado Kaichin coins. Over time, private mints contributed to a diverse coin landscape.
The late 15th century marked the emergence of gold and silver Koshu Kin coins as warlords grappled with debt. The Edo Period brought a unified monetary system under the Tokugawa Shogunate, establishing gold, silver, and copper coins.
While paper currency existed earlier, the Meiji Restoration in the late 19th century solidified its role. The New Currency Act of 1871 standardized coinage and introduced the yen, modeled after US banknotes.
Initially linked to gold, the yen underwent drastic devaluation post-World War II, aligning with the US dollar under the Bretton Woods system. The 1973 abandonment of the gold standard by the US propelled the yen into a floating exchange rate system. Japan has since actively managed its currency, implementing a “dirty float” regime.
The yen’s history encapsulates Japan’s economic and political transformations, from early coinages to a globally influential currency.
Related Currency Pairings
African Currencies
Asians Currencies
The Evolution of the Japanese Yen
The Japanese yen (JPY) has been the national currency of Japan since 1868, replacing the old Japanese currency system. Its history reflects the country’s rapid economic growth, political stability, and cultural influence.
Early Years and Currency Union: Before the Meiji Restoration in 1868, Japan used a variety of regional currencies. After the Meiji Restoration, the government introduced the yen as a unified national currency.
Economic Growth and Currency Appreciation: Following World War II, Japan experienced a period of rapid economic growth, known as the “Japanese Economic Miracle.” This economic growth was accompanied by a significant appreciation of the yen against the US dollar.
Currency Interventions and Monetary Policy: To manage the appreciation of the yen and maintain export competitiveness, the Japanese government intervened in the foreign exchange market and implemented loose monetary policies. These policies led to low interest rates and a large current account surplus.
Recent Developments: In recent years, Japan has faced economic challenges, including deflation, aging population, and a declining birth rate. The Bank of Japan has implemented unconventional monetary policies, such as quantitative easing, to stimulate the economy and combat deflation. Despite these challenges, the Japanese yen remains a strong and stable currency.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of