The Treasurer’s Guide to Trade Finance

Japan

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 5,869 bn Goods Exports 790

GDP per capita (USD) 46,392 Imports 794

GDP volume growth (year-on-year) – 0.5% Net – 4

Population 126.50m Services Exports 137

MMR (year average) 0.80% Imports 176

Exchange rate JPY / USD (year average) 79.807 Net – 38

BoP (goods, services & income) as % of GDP + 2.3% Source: IFS, IMF, January 2013

International/Regional memberships

Asia-Pacific Economic Cooperation
(APEC): since 6–7 November 1989.

International Monetary Fund (IMF):
since 13 August 1952.

World Trade Organization (WTO):
since 1 January 1995.

Government trade policy

ƒ Japan’s trade policy is primarily focused
on developing trade agreements with
neighbouring East Asian countries and

member states of the Association of Southeast

Asian Nations (ASEAN). To this end, Japan

endorsed a Free Trade Agreement (FTA) with

ASEAN in December 2008.

ƒ National export credit insurance provider:

Nippon Export and Investment Insurance

(NEXI —nexi.go.jp). The Japan Bank for

International Cooperation (JBIC —

http://www.jbic.go.jp) also provides state-

supported export credit insurance.

ƒ Japan maintains two free trade zones, both

in the Okinawa special economic zone.

Currency and exchange controls

Official currency: Japanese yen (JPY).

Exchange rate arrangement: free floating.

Japan imposes few foreign exchange controls.
Most were lifted through the 1998 Foreign
Exchange and Foreign Trade Law.

ƒ The Ministries of Finance (www.mof.go.jp)
and Economy, Trade and Industry
(www.meti.go.jp) or Japan’s central bank,
the Bank of Japan (BOJ — http://www.boj.or.jp),,)
administer any remaining foreign exchange
controls.

ƒ Customs authorities must notify the Ministry
of Finance of all imports/exports of gold
weighing more than 1 kg, and all cash,
cheques, promissory notes and securities in
excess of JPY 1 million.

Bank accounts

ƒ Resident companies can hold local currency

(JPY) bank accounts outside Japan.

ƒ Resident companies can hold foreign

currency bank accounts within or outside

Japan.

ƒ Non-resident companies can hold local

currency bank accounts both within and

outside Japan.

ƒ Non-resident companies can hold foreign

currency bank accounts in Japan.