ELI5: Explain Like I'm 5

Bank of Japan

Okay kiddo, do you know what a bank is? It's a place where you can keep your money safe and also borrow it if you need it for something important.

Now, just like how you have a piggy bank, countries also have banks. One such bank is called the Bank of Japan. It's like a super big piggy bank for the entire country of Japan.

The Bank of Japan's job is to make sure Japan's economy works well. They do this by controlling how much money is in Japan's piggy bank, and how much Japan's money is worth compared to other countries.

When the Bank of Japan wants to control how much money is in Japan's piggy bank, they use a tool called "monetary policy." This means they decide how much money people can borrow from the piggy bank, and how much interest they have to pay back.

The Bank of Japan also influences how much Japan's money is worth compared to other countries' money. They do this by buying and selling different currencies in the international market.

Overall, the Bank of Japan is a very important place that helps keep Japan's economy strong and healthy.
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