The Bank of Japan was created to manage the daily lives o the people of Japan. The main purpose of creating this bank was to bring sound development and stability to the lives of general public of the country. This thing is done by managing a and controlling the general volume of money within the economy through the smooth circulation of money. In addition, another function of bank of Japan is also to maintain stability inside the country’s financial framework. It should be kept in mind that bank of japan is neither a privately owned business nor a government organization or a privately owned business. It is above the all other government institutions. It carries out its objectives through controlling currency, issuing bank-notes and smoothing the monetary policy. The above-mentioned actions also help in keeping the Japanese financial kingdom stable and smooth. The main technique used by the bank is to keep a strict control on the currencies traded within the economy and that also helps in keeping Japanese finances stable.