Understanding the Exchange Rate

Japanese Money
Here are some quick points about Japanese money:
  • 1 yen = a bit more than 1 penny
  • 100 yen = about $1.22
  • 1,000 yen = about $12.20
  • 10,000 yen = about $121.95
  • (based on a 82 yen per dollar)
There are two basic counters used for Japanese yen. They are:
  • Yen - from 1 to 9,999 yen
  • Man - increments of 10,000 yen - the counter then changes to man yen (pronounced with the short “a” sound as the “a” in Father)
For example, 10,000 yen would be called 1 man yen or in Japan, “ichi man en”.

If you see a picture of a car for sale, you will usually see two or three numbers, such as 99. That means 99 increments of 10,000 yen. So, 99 man yen would be approximately $12,000.

Understanding the Exchange Rate
For those of us who live overseas and receive our funds in U.S. dollars, our buying power fluctuates with the exchange rate.

First, BIMI receives funds sent in from supporting churches. At the end of each month, BIMI sends our support to our Stateside bank. In Japan, we then take a check to our Japanese bank or use a Japanese post office ATM machine. Once the money enters a Japanese bank or is withdrawn from an ATM machine, it is switched into Japanese yen at the current exchange rate.

For those unaccustomed to exchanging money, the basic idea is that the higher the dollar value or a high exchange rate, the cheaper the goods. Another way to think of it is that the higher the dollar, the less it costs us to pay our bills.

Here is information to show you how this has changed with time:
  • David’s first visit to Japan in December of 1984 - 258 yen/$
  • Our family’s arrival in Japan in August of 1988 - 135 yen/$
  • Since that time, the rate has fluctuated between 80 and 140 yen/$
  • It has rarely stayed below 100 yen/$ for very long, until now
Recently, here is what has happened:
  • In September 2007 the exchange rate was 120 yen per dollar
  • By January 2008 it had dropped as low as 98 yen per dollar
  • It slowly went back up to 108 yen per dollar in August 2008
  • By December 2008, the rate was down to 87
  • Since then, the rate has hovered between 81-95
  • Anything lower than 110 is not very good
  • Below 100 is even worse
  • The current rate is ???

Here is an example of changes to one of our expenses, our house rent - 80,000 yen per month:

@ 135 yen/$ - $592
@ 120 yen/$ - $666
@ 110 yen/$ - $727
@ 100 yen/$ - $800
@ 90 yen/$ - $888
@ 80 yen/$ - $1000

In conclusion, what used to only cost $592 now costs close to $1000!

What Should We Do?
Since the exchange rate moves like a roller coaster, it is best to have one’s trust in something more stable. That is why is so important to trust in the Lord! It is our firm belief that when you are trusting Him and are in the center of His will, He provides for your every need. This is the only way to live!

This information is given with the hope that you will be able to empathize with your missionaries and to know what missionaries experience all over the world.

Consider a different side of the coin. Think about our Japanese missionaries who receive their funds in Japanese yen. Although we from the U.S., might prefer a higher dollar exchange rate, even when it is low, God is helping others...our Japanese missionaries.

So, for that reason our request is simple...pray for us, but pray more that souls will be saved no matter what the exchange rate might do. Will you pray for us?