Tokyo Practical information

Money & costs

Contents

Economy

Although it looked as if Japan was going to take over the world economically through the 1980s, by the 1990s Japan’s economy was in a certifiable recession and remained so until very recently. Unemployment hovered around 5% (high by national standards), homelessness rose (visible in major encampments in districts such as Ueno and Shinjuku), corporations approached bankruptcy and bank loans turned into bad debts. The result: deflation, increased public debt and growing concern over how to support a greying populace (Japan has one of the world’s oldest populations, with life expectancies over 77 years for men and 85 for women). However, 2005 marked the beginning of a turnaround, which appears, finally, to have traction – land values in the city rose for the first time since 1991, and the Nikkei index is once again climbing high.

Some smart Tokyoites used the bubble to regenerate. People under 40 began to reject the stability of lifetime employment in favour of more compelling, often more flexible, independent jobs. The emblem of this movement was Horie Takafumi, who in 1995 dropped out of Tokyo University (Japan’s most prestigious) at the age of 23 to found a consulting company that eventually morphed into Livedoor, one of Japan’s leading internet services and DVD-rental empires. Horie’s showy personal trappings – fast cars, T-shirts instead of suits, brash corporate takeover bids and being a general media hound – infuriated the old-line corporate world. They also landed him in a book-cooking scandal that has periodically splashed across the headlines in recent times.

Money

Be warned that cold hard cash is the way to pay in Tokyo. Although credit cards are becoming more common, cash is still the payment of choice, and travellers cheques are rarely accepted outside of large hotels and department stores. Do not assume that you can pay with a credit card, and always carry sufficient cash.

The currency in Japan is the yen (¥), and banknotes and coins are easily distinguishable. There are ¥1, ¥5, ¥10, ¥50, ¥100 and ¥500 coins; and ¥1000, ¥2000, ¥5000 and ¥10, 000 banknotes (the ¥2000 note is very rarely seen). The ¥1 coin is an aluminium lightweight coin; the bronze-coloured ¥5 and silver-coloured ¥50 coins both have a hole punched in the middle. Note that some vending machines do not accept older ¥500 coins. Prices may be listed using the kanji for yen ().

ATMs

ATMs are almost as common as vending machines in Tokyo. Unfortunately, most of these do not accept foreign-issued cards. Even if they display Visa and MasterCard logos, most accept only Japan-issued versions of these cards. Also, 24-hour ATMs are exceedingly rare.

Fortunately, Citibank operates 24-hour international ATMs in major areas including Roppongi, Harajuku, Omote-sandō and Shinjuku. Better still, the Japanese postal system has recently linked all of its ATMs to the international Cirrus and Plus cash networks (and some credit-card networks), making life a breeze for travellers to Tokyo. Most larger post offices (9am-5pm Mon-Fri, 9am-noon Sat) have postal ATMs. Press the handy button marked ‘English Guidance’ for English instructions.

Changing money

In theory, banks and post offices will change all major currencies. In practice, some banks refuse to exchange anything but US-dollar cash and travellers cheques. Note also that the currencies of neighbouring Taiwan (New Taiwan dollar) and Korea (won) are not easy to change, so you should change these into yen or US dollars before arriving in Japan.

With a passport, you can change cash or travellers cheques at any Authorised Foreign Exchange Bank (signs are displayed in English), major post offices, some large hotels and most big department stores. Note that you receive a better exchange rate when withdrawing cash from ATMs than when exchanging cash or travellers cheques in Tokyo. Be aware that many banks place a limit on the amount of cash you can withdraw in one day (often around US$400).

Credit cards

As Japan is very much a cash-based economy, never assume you can pay using a credit card. For businesses which do take credit card, Visa is most widely accepted, followed by MasterCard, American Express and Diners Club. Getting a cash advance using your foreign-issued credit card is nearly impossible, but Sumitomo Mitsui banks (SMBC) give cash advances if you bring your passport with you. The main credit-card companies all have offices in Tokyo.

American Express (0120-02-0120; 24hr)

MasterCard (5728-5200)

Visa (00531-44-0022; 24hr)