The Ministry of Finance governs Japan’s foreign exchange system. Japan has maintained a free-floating exchange rate system since February 1973 with foreign exchange intervention conducted when necessary.

Under the new Foreign Exchange and Foreign Trade Law, individuals or companies may undertake foreign exchange transactions as an import/export agency or bureau de change. For purposes of monitoring balance of payments, understanding market trends and responding to international requirements, an ex-post facto reporting system has been established under this law.

Import/ Export of Currencies

There are no restrictions on the amount of foreign currency that can be brought into or taken out of Japan.

Domestic/ Foreign Currency Accounts

Foreign currency accounts held by residents in Japan or abroad are allowed without restrictions. Nonresidents are allowed to hold local and foreign currencies domestically.

Borrowing/ Lending

No borrowing restrictions for resident and nonresidents individuals. Domestic and foreign-owned firms are permitted to borrow so long as they report the transactions to the MOF. Principal and payments on overseas loans are freely permitted. Amounts exceeding five million yen require prior notification to the MOF. Foreign-owned firms are allowed to raise funds in Japan.