In South East Asia, the Japanese military arranged for bank notes to be issued, denominated in the various currencies (rupees, pesos, dollars, etc.)

Generally, thick red lines were overprinted to cancel the name "Bank of Japan" (日本銀行) and any text promising to pay the bearer in gold or silver.

Large red text instead indicated that the note was military currency ("軍用手票") so as not to be confused with regular Japanese yen.

Towards the end of the war, as more money was needed to pay military personnel, notes were issued without serial numbers once more.

After exchanging for Hong Kong dollars, the Japanese military purchased supplies and strategic goods in the neighbouring neutral Portuguese colony of Macao.

A Tokyo district court ruled against the plaintiff on 17 June 1999, stating that, although it acknowledged the suffering of the Hong Kong people, the government of Japan did not have specific laws concerning military yen compensation.

Japan also used the Treaty of San Francisco, of which the United Kingdom was a signatory state, as one of the reasons to deny compensation.