The yen is the official national currency of Japan, and is denoted by JPY. The Meiji government introduced the yen to replace the previous complex system of the Edo Period, where there was no fixed exchange rate between the various coins used. The New Currency Act of 1871 established the yen as the official unit of currency and moved Japan onto the Gold Standard. It was named the "yen" because of the direct translation to "round object." In April of 1949, the yen was pegged at 1 USD = ¥360, where it stayed until 1971. At this time, however, the Bretton Woods system collapsed. This international monetary system, based on stable and adjustable exchange rates, was reluctantly switched to a regime of floating exchange rates and the value of the yen started to float as it still does today.
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