The Chinese were slow to accept unfamiliar coinage and preferred the familiar Mexican dollars, and so the Hong Kong government ceased minting these coins and sold the mint machinery to Japan.
The new currency was gradually introduced beginning from July of that year.
The yen was therefore basically a dollar unit, like all dollars, descended from the Spanish Pieces of eight, and up until the year 1873, all the dollars in the world had more or less the same value.
The yen replaced Tokugawa coinage, a complex monetary system of the Edo period based on the mon.
To bring an end to this situation the Bank of Japan was founded in 1882 and given a monopoly on controlling the money supply.
Following World War II the yen lost much of its prewar value.
The belief that the yen, and several other major currencies, were undervalued motivated the United States' actions in 1971.However, the new fixed rates of the Smithsonian Agreement were difficult to maintain in the face of supply and demand pressures in the foreign-exchange market.In early 1973, the rates were abandoned, and the major nations of the world allowed their currencies to float.The spelling and pronunciation "yen" is standard in English.This is because mainly English speakers who visited Japan at the end of the Edo period to the early Meiji period spelled words this way. Walter Henry Medhurst, who had neither been to Japan nor met any Japanese, having consulted mainly a Japanese-Dutch dictionary, spelled some "e"s as "ye" in his An English and Japanese, and Japanese and English Vocabulary (1830).
Following the United States' measures to devalue the dollar in the summer of 1971, the Japanese government agreed to a new, fixed exchange rate as part of the Smithsonian Agreement, signed at the end of the year.