Invoicing of Japanese Exports and Imports: Analysis of Granular Data by Industry and by Country

As a successful competitive research bid to use Japanese customs data, this study calculates the share of trade denomination currency (invoice currency) in Japan's exports and imports by industry and country from individual export and import documents. The results clarify the characteristics of invoice currency choice. The invoice currency share data by industry and country, compiled from customs data, shows each industry's characteristics by country. We confirm that the industry sector of the traded goods plays a role in the choice of invoice currency shares. In addition, we found that invoice currency shares in some industries varied significantly over the sample period from 2014 to 2022. This indicates that heightened geopolitical risks and supply chain restructuring in recent years may affect the choice of invoice currency. We have confirmed a large gap between the average (vs. world) share and the share by individual industry and country. Time-series changes are also remarkable. Our data indicates that the invoice currency shares aggregated in trade with the world do not necessarily reflect changes in invoice currency shares or the actual use of partner country currencies.