Forex Exchange Market and Japanese Economy in World War II


Forex Exchange Market and Japanese Economy in World War II

 

Japanese Heavy Cruiser "Ashigara" in dry dock, Singapore. 1 December 1942.

Japanese Heavy Cruiser “Ashigara” in dry dock, Singapore. 1 December 1942.

 

The history of the Forex Exchange Market started in May 1878 when, after multiple considerations following the increasing foreign influence in Japan economy , the Tokyo Kabushiki Torihikijo was established by first time in Japan. The market continued operating during World War II. Indeed, in 1943 several stock exchanges operating in various Japanese cities were associated and integrated as an unique market located in Tokyo. However, after the atomic attacks suffered by Japan in 1945, the market suffered a break down and ceased the operations.

The Pacific War severely influenced the Japanese economy and the Japanese currency lost most of its value. The post-war days were specially difficult and it was not until 1949 or early 50s when the Japanese currency started recovering and the value was set to 360 yen per one US Dollar. This was a pre-determined value decided during the agreements of the main allied powers reached during the Bretton Wodds Conference in 1944. Interestingly, the rate of exchange US dollar-Japanese Yen remained stable until early 1970s. When the United States abandoned the gold standard, the Japanese Yen was allowed to fluctuate in the modern forex stock market.

 

 


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Shares