The Japanese Yen in Cross-Border Remittances: What Businesses Need to Know

A Report by CYS Global Remit Digital Media Marketing Team

The Japanese Yen (JPY) is more than just a symbol of Japan’s economic power—it is one of the world’s most widely traded currencies. Ranked third globally after the US Dollar (USD) and the Euro (EUR), the Yen plays a crucial role in international trade and finance. For SMEs and financial institutions engaged in cross-border payments, particularly within the Asia-Pacific (APAC) region, understanding the Yen’s dynamics is key to ensuring efficient and cost-effective remittances. 

Why the Yen Matters in Remittance 

Japan remains a major trading partner for Asia, with strong economic ties to China, Southeast Asia, and beyond. Beyond direct trade, the Yen is also widely used as a funding currency, thanks to Japan’s historically low interest rates.

Its importance in remittances can be seen across three areas: 

• SME Payments – Many SMEs across Asia import goods, equipment, and technology from Japan. Yen-denominated payments are essential for maintaining smooth supplier relationships. 

• Overseas Workers – Japan hosts a growing foreign workforce, especially from Southeast Asia. Their remittances provide vital household income in countries such as the Philippines, Vietnam, and Indonesia. 

• Financial Institutions – Banks and payment providers often route significant flows through Yen corridors to optimise liquidity and settlement. 

Yen Volatility: A Double-Edged Sword 

The Bank of Japan’s (BoJ) unique monetary stance—characterised by ultra-low interest rates and occasional intervention—has led to sharp fluctuations in the Yen. This volatility creates both opportunities and risks: 

• Opportunities – A weaker Yen makes Japanese exports more affordable, helping SMEs across Asia save on imports. 

• Risks – Sudden Yen appreciation raises remittance costs for overseas workers and increases input costs for businesses. 

At CYS Global Remit, we track these shifts closely to help clients manage FX exposure and optimise the timing of their cross-border transfers. 

Practical Considerations for Remitting in Yen

Businesses and individuals should keep the following in mind when making Yen transactions: 

• Timing – Monitor Yen movements before executing large-value transfers. 

• FX Liquidity – Choose a provider with strong Yen liquidity for smooth execution, even during volatile periods. 

• Hedging – Use hedging strategies to secure rates for recurring payments. 

• Compliance & Speed – Japan’s financial regulations are stringent; a trusted remittance partner ensures both compliance and efficient settlement. 

  
  

CYS: Your Trusted Partner for Yen Transactions

At CYS Global Remit, the Yen is one of our most active corridors. With decades of experience in FX liquidity management and a strong regional network, we enable clients—SMEs, financial institutions, and payment providers alike—to achieve: 

• Competitive exchange rates. 

• Fast, efficient cross-border settlement. 

• Tailored solutions for one-off and recurring payments. 

Our treasury team manages billions in annual FX contracts, with the Yen at the heart of Asia’s interconnected trade flows.

Looking Ahead 

The Japanese remittance market is steadily expanding—from USD 2.05 billion in 2023 to USD 2.12 billion in 2024, with a projected CAGR of 4.3% through 2035. Globally, remittances rose from USD 865 billion in 2023 to USD 905 billion in 2024, highlighting the rising demand for reliable cross-border services. 

As Japan continues to influence global trade and finance, the Yen will remain central to both remittances and business payments. For SMEs sourcing from Japan, financial institutions managing liquidity, and overseas workers sending funds home, staying ahead of Yen trends is not just financial strategy—it is business sustainability. 

At CYS, we are committed to equipping our clients with the insights, infrastructure, and expertise to navigate these complexities—ensuring every Yen remitted works harder for you.