IMF Working Papers

The Internationalization of Yen and Key Currency Questions

By Toru Iwami

April 1, 1994

Preview Citation

Format: Chicago

Toru Iwami. The Internationalization of Yen and Key Currency Questions, (USA: International Monetary Fund, 1994) accessed September 20, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The role of the yen in the International financial system is reconsidered from a comparative (historical) approach. Compared with the D-Mark in the postwar years, the limited use of the yen results not so much from regulations on capital movements as from the structure and behavior of Japanese economy. The history of the pound-sterling and the U.S. dollar reveals the fact that such factors as the network of foreign trade and economic size constitute the basis and “inertia” of a key-currency. Thus for a currency to rise to a key-position in global transactions, real factors are more decisive than financial market arrangement. Seen from the foreign economic relations, it is not possible for Japan to own a key-currency independent from the U.S. dollar.

Subject: Balance of payments, Currencies, Current account balance, Exports, Imports, International monetary system, International trade, Money

Keywords: Asia and Pacific, Currencies, Currency, Currency risk, Current account balance, Dollar, East Asia, Economy of scale, Euro-currency market, Europe, Euro-yen bond, Euro-yen business, Exports, Foreign trade, Global, Imports, International monetary system, Japan, Market, Market need, Market share, North America, Pound sterling, Trade finance market, Transaction currency, WP, Yen, Yen share

Publication Details

  • Pages:

    96

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1994/041

  • Stock No:

    WPIEA0411994

  • ISBN:

    9781451846034

  • ISSN:

    1018-5941

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