The Japanese yen (JPY) is the official currency of Japan. It is commonly used as a reserve currency, and it is the world’s third most traded currency. The Japanese government’s currency intervention policy has been in place since 1973, which places the yen under a “dirty float” regime.
When sending money to a Japanese bank account, you will need to provide the receiving bank’s SWIFT code. The table below lists SWIFT codes of some popular financial institutions in Japan.
|Bank of Tokyo - Mitsubishi UFJ, Ltd.||Tokyo||BOTKJPJ2XXX|
|Japan Post Bank||Tokyo||JPPSJPJ1XXX|
Work required Yuki to travel to the U.S. for two years. During his stay in the U.S., he needed to send some money to Japan each month, to cover for his family’s living expenses and existing loan repayments. Upon getting to the U.S., he compared some of the leading banks with the top overseas money transfer companies. The table below shows results of the top alternatives from both realms.
|BANK||MONEY TRANSFER SERVICE|
|Exchange rate||$1 = JPY 104.2421||$1 = JPY 106.4611|
|Amount received for $2,500||JPY 258,520.41||JPY 266.152.75|
|Transfer time||2 to 6 days||2 to 3 days|
|Transfer options||Bank account||Bank account|
|Difference of||JPY 7,632.34|
Using the money transfer company instead of the bank turned out to be a more cost effective alternative for Yuki. The company he selected let him lock in exchange rates for up to six months, and it also let him schedule transfers ahead of time.
If the recipient does not have a bank account or if you want to send money to Japan quickly, you may consider using the services of companies such as Western Union, Ria, or MoneyGram.
|WESTERN UNION IN JAPAN|
|Tokyo Travelex Shinjuku Minamiguchi Shop, 2 10 9 Yoyogi 1F Homma Building Shibuya Ku, Tokyo||Daikokuya Shinjuku Minamiguchi Shop 2 8 5 Yoyogi 1F Shinjuku Minamiguchi Bldg, Shibuya Ku, Tokyo|
|Yokohama His Kannai 2 12 Masago Cho Naka Ku 1F Kannai Ekamae Daiichi Bldg Yokohama Shi||Wang Fujing Yokohama Yamashita Cho 92 3 Naku Ku Yokohama|
|WORLDREMIT IN JAPAN|
|Tokyo City Express Japan Shin-Okubo Initial Building 2F 2-10-9 Hiyakunin-Cho Tokyo||Enremit - Shinjuku B1F Sangenya Building 2-3-23 Hyakunin-Cho Shinjuku-ku Tokyo|
|RIA IN JAPAN|
|Tokyo Unidos Ltd (IME Malaysia) 169-0073 Tokyo-To, Shinjuku-Ku Hyakunin-Cho 2-4-8 Shinjuku, Tokyo||Unidos Ltd (IME Malaysia) 169-0073, Tokyo To, Shinjuku Ku Hyakunin 2-9-1 Twi Shinjuku, Tokyo|
Crime levels in Japan are typically low, although you should exercise due precautions. Travelling on public transport and walking around at night is typically safe. The entertainment districts of Tokyo such as Kabuki-cho and Roppongi and considered to be high risk areas, especially after dark. There have been reports of foreigners being targeted in different ways such as extortion, drink-spiking, robbery, credit card fraud, and assault.
When sending money to Japan, the desired mode of transfer has a bearing on the information you need to provide.
The Japanese yen is a completely convertible currency, and there are no restrictions on cross-border money transfers made to or from the country. The Bank of Japan is responsible for overseeing the country’s financial institutions and payment systems, and it also works in preserving price stability. The bank has not interfered in the forex market since 2012.
While there are no restrictions on moving money in or out of the country, if you plan to invest 10% or more in a sector that has implications surrounding national security or national sovereignty, you will need approval from the country’s Ministry of Finance in advance.