What Currency Is Used in Japan? Your Guide to the Japanese Yen

Planning a trip to Japan? One of the first things you’ll want to know is the local currency: the Japanese yen (¥ or JPY).

Japan is a blend of the modern and the traditional, and handling yen will be part of your adventure, whether you're buying souvenirs, grabbing a quick bite, or experiencing a traditional tea ceremony.

Let’s dive into everything you need to know about using yen in Japan.

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Understanding the Japanese Yen (JPY)

Japan’s currency, the yen, is represented by the symbol ¥ and the code JPY. Locally, it’s pronounced “en” and often written with the kanji character 円.

The yen was introduced back in 1871 as part of Japan’s efforts to modernise, and today, it’s an essential part of everyday life, whether in the bustling streets of Tokyo or the serene temples of Kyoto.

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Yen Denominations: Coins and Notes

Japan has both coins and banknotes, and they’re easy to tell apart. Here’s a quick breakdown:

• Coins: You’ll find coins in values of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. Each has a unique design and size, making it easy to distinguish. The ¥5 and ¥50 coins even have holes in the centre, which locals often say brings good luck!
• Banknotes: The banknotes come in denominations of ¥1,000, ¥2,000 (less common), ¥5,000, and ¥10,000. Each bill features historical figures or cultural symbols, and they’re beautifully designed—a small artwork in your wallet.

Coins are perfect for small purchases, while banknotes come in handy for larger transactions. You’ll quickly get used to handling both.

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Using Cash and Cards in Japan

Japan is still a cash-centric society, so carrying cash is essential.

While credit and debit cards are gaining popularity in urban areas, cash is still king, especially for smaller purchases, rural areas, and traditional markets.

• Where Cash is Essential: Small shops, local restaurants, temples, and rural areas often don’t accept cards, so be sure to have some cash on hand.
• Credit and Debit Cards: Major cards like Visa, MasterCard, and JCB are accepted in most larger cities, hotels, and department stores. But if you’re visiting a quaint tea shop or a local market, they may prefer yen notes and coins.

If you’re planning to travel widely in Japan, having cash ensures you’re ready for anything.

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Where to Exchange and Withdraw Yen

There are several ways to exchange currency in Japan, but not all offer the same value. Here’s how to get the best deal:

• Currency Exchange Counters: Airport counters are convenient but tend to have higher fees. You’ll find better rates at banks and dedicated currency exchange kiosks in the city.
• ATMs: ATMs in Japan are reliable and widely available. The best options for international cards are Japan Post Office ATMs and 7-Eleven ATMs. These are usually open 24/7, and instructions are available in English.
• Travel Cards: Using a travel debit card from services like Wise or Revolut can be a smart choice. These cards typically offer favourable exchange rates without extra fees, making them ideal for frequent travellers.

A quick tip: ATMs in Japan sometimes have specific hours, especially in rural areas, so it’s wise to withdraw cash in advance if you’re exploring off-the-beaten-path destinations.

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Practical Tips for Managing Yen

To make your yen stretch a bit further, here are some practical tips:

• How Much Cash to Carry: For daily expenses, it’s good to have at least ¥5,000 to ¥10,000 on hand. This should cover food, transport, and small purchases.
• Cash vs Digital Payments: While cash is often preferred, mobile payment apps like Suica and PASMO are growing in popularity, especially in urban areas. These apps can be used for public transport, vending machines, and even convenience stores.
• Understanding Japanese ATMs: ATMs are plentiful, but some charge small fees depending on the location and time of use. To save on fees, withdraw larger amounts less frequently if your card allows it.

Handling yen in Japan isn’t just practical—it’s part of the experience. You’ll enjoy how straightforward it is once you’re familiar with the notes and coins.

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Conclusion

Getting to grips with the Japanese yen will make your travels smoother, whether you’re exploring vibrant cities or peaceful countryside villages.

From navigating cash-based payments to knowing where to withdraw yen, you’ll be well-prepared for anything Japan has to offer.

Ready to experience Japan? Embrace the yen, get a taste of the local culture, and enjoy every bit of this incredible country.