Friday, January 9, 2009

Japanese Invasion Money

When the Japanese had captured the Asian countries , thus began the process of Japanisation of the subjects of the occupied countries.The Japanese authorities set up governments in all territories and one of the first things they did was name changing which will be stated in the posts. And in all occupied territories they had designs for banknotes which will be used by the local population once they have become citizens of the Japanese empire.These banknotes would later become victim to inflation due t the uncontrolled printing of these notes by the Japanese authorities.Emperor Hirohito

These Japanese Invasion Money was officialy known as the Southern Development Banknotes was issued by the Japanese military authority.In February 1942, a law was passed in Japan to establish the Wartime Finance Bank and the Southern Development Bank.These institutions issued bonds to raise funds. The former had also loaned money primarily to military industries but also had loaned money to other ventures, including hydroelectric generators, electric power companies, shipbuilding and petroleum.
The latter provided financial services in the areas occupied by the Japanese military, and the Southern Development Bank notes were used as the one and only currency circulating. These banknotes were printed without control and whenever the Japanese authorities needed money to pay for whatever supplies they needed, they would resort to the printing machine to print banknotes. Amount of money in circulation in the occupied territories would increase from millions to billons.

Life became very hard as prices rose and rose until prices for the most basic items such as rice was too expensive for people who were poor.More on the Japanese invasion money(JIM) in the next posts.Below are the exchange rates for the Japanese invasion money for local currency.

1 Japanese Rupee=1 Burma rupee
1 Japanese Gulden=1 Javanese Gulden
1 Japanese Dollar=1 Malayan Dollar
1 Japanese peso=i Philippine peso
1 Indochinese Piastre = 0.976 Japanese Yen
1 Japanese yen=2 Japanese Oceanic Shillings

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