The Internationalization of the Yen in the New Millennium
As Japan expanded trade and investment with East Asian countries due to the rapid appreciation of the yen after the Plaza accord in 1985, yen-invoiced trade increased sharply in Japan’s trade with South-East Asian countries and shot up further during the 1990s. This trend put Japan into the centre of gravity of regional development, and Japanese influence in the region has increased over the years. But the yen-invoiced ratio of trade declined considerably from 1994 in Japan’s exports to East Asia, and the US dollar was still used more than the yen even in March 2003.
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