A Comprehensive Guide to Chinese National Currency

The Chinese national currency is the Renminbi (RMB), also known as the Chinese Yuan (CNY). The RMB is the official currency of China and is subdivided into 100 cents.

The first RMB notes were issued in 1949 by the People's Bank of China, the central bank of China. The design of the notes has changed over time, but the RMB has remained the standard currency.

Today, the RMB is widely accepted as a global currency, and it's also available in digital form, known as the e-CNY.

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The Chinese national currency is referred to as the Chinese yuan (CNY) and renminbi (RMB), with RMB being the official currency of China.

The yuan is also the principal unit of account for the Chinese currency, making it a crucial part of the country's economy.

In Mandarin Chinese, the character yuan is used to describe round or circular things, and it has a fascinating history tied to the silver Spanish dollars introduced by European merchants in the 17th and 18th centuries.

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The Chinese yuan, or CNY, is a fascinating currency with a rich history. It's the official currency of China and is used as the principal unit of account.

China began to mint its own silver yuan coins in 1889, marking the beginning of a long history of using the yuan as a form of currency. Both the Qing Dynasty and early Republican government circulated silver yuan coins and banknotes.

The traditional character for yuan is also used in the currencies of other Chinese-speaking regions, including the New Taiwan Dollar and the Hong Kong Dollar. This is a testament to the widespread use and acceptance of the yuan.

The modern-day Chinese Yuan uses the abbreviation CNY to distinguish between the mainland currency and other uses of the word. Forex brokers will quote prices with the ticker CNY.

One yuan can be further divided into jiao and fen, with 10 jiao in a yuan and 10 fen in a jiao. This makes it easy to break down larger amounts of money into smaller, more manageable units.

The largest banknote is 100 yuan, followed by 50 yuan, 20 yuan, 10 yuan, five yuan, and one yuan. This variety of denominations makes it convenient for everyday transactions.

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The Renminbi (RMB) is the official currency of China, also known as the People's Currency. The Chinese government has been working to liberalize currency restrictions, allowing the yuan to become a more attractive investment option.

In 2010, renminbi-denominated bonds were purchased by Malaysia's central bank, and McDonald's issued renminbi-denominated corporate bonds through Standard Chartered Bank of Hong Kong. This liberalization has made the yuan more appealing to investors.

The People's Bank of China (PBOC) was established during the Chinese Civil War and issued the first RMB notes in December 1948. The RMB was revalued at a rate of 10,000 to one in 1955, with each yuan replacing 10,000 old yuan.

Countries that are left-leaning in the political spectrum have begun to use the renminbi as an alternative reserve currency to the United States dollar. The Central Bank of Chile reported holding $91 million worth of renminbi in reserves in 2011.

As of the end of 2019, the People's Bank of China has set up renminbi clearing banks in 25 countries and regions outside of mainland China. This has made the use of renminbi more secure and transaction costs have decreased.

The value of the RMB was tightly controlled during the period of the command economy, with one yuan pegged at 2.46 yuan to the U.S. dollar until 1971.

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In China, the commonly used banknotes are in denominations of one, five, 10, 20, 50, and 100 yuan.

Banknotes with values of one yuan and below are rarely used due to inflation, and many places just round up or down to the nearest whole number.

You can pay small change by giving the person one yuan and telling them to keep the change instead.

In China, you'll see a range of banknotes in circulation, including ones, fives, tens, twenties, fifties, and hundreds of yuan.

One yuan coins are also widely used.

Banknotes with a value of less than one yuan, like one jiao and five jiao, are rarely used due to inflation.

Many places just round up or down to the nearest whole number.

If someone insists on paying small change, you can give them one yuan and tell them to keep the change instead.

The 100 RMB banknote is pronounced yi bai yuan or yi bai kuai.

The 50 RMB banknote is pronounced wu shi yuan or wu shi kuai.

The 20 RMB banknote is pronounced er shi yuan or er shi kuai.

The 10 RMB banknote is pronounced shi yuan or shi kuai.

The 5 RMB banknote is pronounced wu yuan or wu kuai.

The 1 RMB banknote is pronounced yi yuan or yi kuai.

In 1953, aluminium ¥0.01, ¥0.02, and ¥0.05 coins began being struck for circulation.

These coins depict the national emblem on the obverse and the name and denomination framed by wheat stalks on the reverse.

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The aluminium ¥0.01 and ¥0.02 coins were first introduced in 1955.

Issuance of the aluminium ¥0.01 and ¥0.02 coins ceased in 1991, with that of the ¥0.05 halting in 1994.

The ¥0.01 coin got a new lease on life by being issued again every year since 2005.

New designs of the ¥0.1, ¥0.5, and ¥1 coins were introduced between 1999 and 2002.

The ¥0.1 coin was significantly reduced in size and its composition was changed from aluminium to nickel-plated steel in 2005.

All coins, including the ¥0.5, are now made of nickel-plated steel, and the ¥1 coin was reduced in size.

Older fēn and large jiǎo coins are still valid in exchange, but are uncommonly seen in circulation.

Banknotes are a type of currency that can be used to make large purchases.

In many countries, the largest denomination of banknotes is often reserved for high-stakes transactions, such as buying a house or a car.

The United States, for example, has a $100 bill that's a popular choice for big-ticket purchases.

In some countries, like Sweden and Norway, cash is becoming less popular and banknotes are being phased out.

The largest denomination of banknotes in Sweden is the 1,000-krona note, which is still widely accepted.

In general, banknotes are designed to be secure and difficult to counterfeit, with features like watermarks and holograms.

The Chinese government plays a significant role in determining the exchange rate of the Renminbi (RMB) due to its non-convertible nature.

The government intervenes from time to time to avoid big fluctuations in the RMB's exchange rate, which can be difficult to predict.

You can find the real-time official exchange rate of RMB, which is also the rate used when exchanging RMB while traveling in China.

If you're planning a trip to China, booking a tour in advance can help minimize exchange loss if you think the exchange rate will change in your favor.

The China Guide, a travel agency based in Beijing, offers a flexible payment plan that allows you to lock in the exchange rate at the time of booking.

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This means you can pay as little as 10% of the tour price if you think your home currency will be stronger against RMB in the future.

On the other hand, if you think your currency will be weaker against RMB, you can pay up to 100% of the tour price in advance to lock the exchange rate.

If you're unsure about the trend of the RMB's exchange rate, you can pay 50% of the tour price at the time of booking and the rest when your tour gets closer, ensuring you pay at the average exchange rate.

China's transition to a market-oriented exchange rate was a gradual process spanning 15 years, involving changes in the official exchange rate and the introduction of foreign exchange markets.

In 1979, the State Council approved a system allowing exporters to retain a share of their foreign exchange earnings, referred to as foreign exchange quotas.

This move marked an important step towards a market-oriented exchange rate, which was further supported by the government's introduction of an "internal settlement rate" of ¥2.8 to 1 US dollar in the mid-1980s.

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Digital currency has become increasingly popular in China, with the introduction of the digital yuan. The digital yuan is a digital version of the Chinese currency, the renminbi (RMB), and is designed to be used for everyday transactions.

It's issued by the People's Bank of China, the central bank of China, and is expected to be widely adopted in the future. The digital yuan is already being used in some cities, such as Shenzhen and Hangzhou.

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In the early days of opening up China to external trade and tourism, foreign exchange certificates (FECs) were the primary means of transaction between 1980 and 1994.

The FEC was issued by the Bank of China and was exchangeable for foreign currencies at the prevailing official rate, which ranged from ¥2.8 FEC to ¥5.5 FEC per US dollar.

FECs were used by tourists to pay for accommodation and luxury goods sold in Friendship Stores, but their limited availability and restrictions on use led to an underground black market for FECs.

The FEC was officially retired in 1994, when the renminbi was devalued from ¥5.5 to over ¥8 per US dollar, and tourists were allowed to use the renminbi directly.

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Commemorative Renminbi Banknotes are a unique way for China to honor significant events and milestones.

A red ¥50 note was issued in 1999 to commemorate the 50th anniversary of the People's Republic of China. This note features Chinese Communist Party chairman Mao Zedong on the front and various animals on the back.

The People's Bank of China issued an orange polymer note in 2000 with a face value of ¥100, celebrating the new millennium. This note features a dragon on the obverse and the China Millennium monument on the reverse.

For the 2008 Beijing Olympics, a green ¥10 note was issued featuring the Bird's Nest Stadium on the front with the back showing a classical Olympic discus thrower and various other athletes.

In 2015, a blue ¥100 commemorative note was issued to commemorate aerospace science and technology. This note was released on November 26th of that year.

The People's Bank of China issued 120 million ¥50 banknotes on December 28, 2018, to commemorate the 70th Anniversary of the issuance of the Renminbi.

¥20 commemorative banknotes were issued in both paper and polymer in December 2021 to commemorate the 2022 Winter Olympics.

The history of currency in China is a long and complex one. The various currencies called yuan or dollar issued in mainland China as well as Taiwan, Hong Kong, Macau, and Singapore were all derived from the Spanish dollar, which China imported in large quantities from Spanish America from the 16th to 20th centuries.

The first locally minted silver dollar or yuan accepted all over Qing dynasty China was the silver dragon dollar introduced in 1889. This marked a significant shift towards a standardized currency.

The Chinese yuan was made fiat currency in 1935, after the silver standard was discontinued. This change had a profound impact on the economy.

The renminbi was introduced by the People's Bank of China in December 1948, about a year before the establishment of the People's Republic of China. It replaced the various currencies circulating in the areas controlled by the Communists.

A revaluation occurred in 1955 at the rate of 1 new yuan = 10,000 old yuan, which helped to end the hyperinflation that had plagued China in the final years of the Kuomintang era.

The People's Bank of China issued a unified currency in 1948 for use in Communist-controlled territories, which was later denominated as renminbi in 1949. This move helped to unify the Chinese economy.

The value of the renminbi was tightly controlled during the period of the command economy, with one yuan pegged at 2.46 yuan to the U.S. dollar until 1971.

Between 1980 and 1994, Foreign exchange certificates were the primary means of transaction for foreign visitors in China.

These certificates were issued by the Bank of China and were exchangeable for foreign currencies at the prevailing official rate, which ranged from US$1 = ¥2.8 FEC to ¥5.5 FEC.

Foreign exchange certificates were issued as banknotes from ¥0.1 to ¥100 and were officially at par with the renminbi.

Tourists used FECs to pay for accommodation and luxury goods sold in Friendship Stores, but an illegal black market developed due to the non-availability of foreign exchange and Friendship Store goods to the general public.

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Touts would approach tourists outside hotels and offer over ¥1.50 RMB in exchange for ¥1 FEC, highlighting the disparity between the official rate and the black market value.

In 1994, the renminbi was officially devalued from US$1 = ¥5.5 to over ¥8, and the FEC was retired in favour of tourists directly using the renminbi.

The renminbi, also known as the yuan, has a complex history when it comes to its value. Until 2005, its value was pegged to the US dollar, but it was then devalued to increase China's competitiveness in foreign trade.

The renminbi's official exchange rate has been subject to fluctuations, with some studies suggesting it was undervalued by as much as 37.5% against its purchasing power parity. In contrast, the International Monetary Fund estimated that one International dollar was equivalent to approximately ¥3.462 in 2006.

Appreciation actions by the Chinese government and quantitative easing measures by major central banks have helped to reduce the renminbi's undervaluation, with some estimates suggesting it was within 8% of its equilibrium value by 2012. The Chinese government has also announced plans to increase the flexibility of the exchange rate.

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The renminbi's value has been affected by global events, such as the 2015 devaluation and the 2016 Brexit vote, which led to a further depreciation of the currency. The People's Bank of China has made adjustments to the renminbi's daily fix to the US dollar in response to these events.

Here's a rough estimate of the renminbi's value against the US dollar over the years:

The renminbi's inclusion in the IMF's special drawing rights basket in 2016 marked a significant milestone in its internationalization, with an initial weighting of 10.9% in the basket. This move has helped to increase the renminbi's use as a reserve currency.

The Chinese government has made significant strides in internationalizing the renminbi, their national currency. In June 2009, they launched a pilot scheme allowing limited businesses in Guangdong province and Shanghai to trade with counterparties in Hong Kong, Macau, and select ASEAN nations.

This move marked a major shift in the renminbi's exposure to international markets, as previously it was largely restricted. The pilot scheme proved successful, leading to its extension to 20 Chinese provinces and international counterparties in July 2010.

China has since signed agreements with several countries, including Russia, Vietnam, Sri Lanka, Thailand, and Japan, allowing trade to be settled directly in renminbi. This has helped to establish the renminbi as a major player in international trade, with its usage tripling in the last three years.

In ethnic minority regions of China, the renminbi yuan has different names. This is to differentiate it from the local currencies used in these regions.

In Inner Mongolia and other Mongol autonomies, a yuan is called a tugreg. This is also the case in the republic of Mongolia, where it is still named yuani to differentiate it from the Mongolian tögrög.

One Chinese tügürig (tugreg) is divided into 100 mönggü. In Mongolian, renminbi is called aradin jogos or arad-un jogos.

In Tibet and other Tibetan autonomies, a yuan is called a gor. One gor is divided into 10 gorsur or 100 gar.

In Tibetan, renminbi is called mimangxogngü or mimang shog ngul. This highlights the importance of understanding the local terminology when dealing with currency in ethnic minority regions.

The renminbi is also referred to as Xelq puli in the Uyghur autonomous region of Xinjiang.

Here's a quick reference guide to the different names for the renminbi in ethnic minority regions:

The renminbi has made its way beyond mainland China's borders, becoming a widely accepted currency in various territories. Banks in Hong Kong allow people to maintain accounts in RMB, and since 2010, banks worldwide offer foreign currency accounts for deposits in Chinese renminbi.

In Macau, the renminbi has a presence even before the 1999 return to the People's Republic of China from Portugal. Banks in Macau can issue credit cards based on the renminbi, but not loans. Renminbi-based credit cards cannot be used in Macau's casinos.

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Taiwan, on the other hand, has restrictions on the renminbi. Tourists are allowed to bring in up to ¥20,000, which must be converted to Taiwanese currency at trial exchange sites in Matsu and Kinmen.

Some of China's neighbors have also adopted the renminbi, including Pakistan, Mongolia, and northern Thailand. Cambodia welcomes the renminbi as an official currency, while Laos and Myanmar allow it in border provinces and economic zones.

Here's a list of countries where the renminbi is recognized:

The renminbi had little to no exposure in international markets before 2009 due to strict government controls.

In June 2009, Chinese officials announced a pilot scheme allowing business and trade transactions between limited businesses in Guangdong province and Shanghai, and counterparties in Hong Kong, Macau, and select ASEAN nations.

This pilot scheme proved a success and was further extended to 20 Chinese provinces and counterparties internationally in July 2010.

In September 2011, the remaining 11 Chinese provinces were included in the program.

China has agreements with Russia, Vietnam, Sri Lanka, Thailand, and Japan, allowing trade with those countries to be settled directly in renminbi instead of requiring conversion to US dollars.

Australia and South Africa are set to follow soon, further increasing the renminbi's international usage.

In September 2023, the renminbi passed the euro as the second most utilized currency in international trade, having tripled in the last three years.

The renminbi's rise as an international reserve currency is a significant development in global currency management. In 2010, China liberalized currency restrictions on renminbi-denominated bank deposits and financial products, making the yuan more attractive as an investment option.

Some countries have already begun to use the renminbi as an alternative to the US dollar. The Central Bank of Chile reported holding $91 million worth of renminbi in reserves in 2011, and the Central Bank of Venezuela's president made statements in favor of the renminbi.

The renminbi's internationalization has been gradual, but it's gaining momentum. In the first quarter of 2020, the share of renminbi in global foreign exchange reserves rose to 2.02%, a record high.

To meet IMF requirements, China had to give up some of its control over the currency. This move allowed the renminbi to become more liquid and attractive to investors.

By 2020, the People's Bank of China had set up renminbi clearing banks in 25 countries and regions outside of mainland China. This move has made the use of renminbi more secure and reduced transaction costs.

The renminbi's emergence as an international reserve currency has not gone unnoticed. Some national banks, such as the Bank of Thailand, have expressed concerns about the renminbi's lack of full convertibility and the Chinese government's limited vision for international fund-raising.

Here are some key countries that have already adopted the renminbi as a reserve currency:

The Chinese national currency is referred to as the renminbi (RMB), which translates to "People's Currency." The RMB is the official currency of China.

The RMB is made up of several units, including the yuan, jiao, and fen. The yuan is the primary unit of the RMB, and it's often referred to as the "yuan unit." The yuan symbol is ¥, but in written Chinese contexts, the Chinese character for yuan (Chinese: 元; lit. 'constituent', 'part') or, in formal contexts Chinese: 圆; lit. 'round', usually follows the number in lieu of a currency symbol.

The yuan is divided into 10 jiao, and 1 jiao is further divided into 10 fen. You might hear people use the colloquial names "kuai" and "mao" instead of yuan and jiao in everyday conversation.

Here's a quick reference guide to the RMB units:

The ISO code for the RMB is CNY, which is the PRC's country code (CN) plus "Y" from "yuan."

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The Chinese yuan has faced its share of challenges in becoming a widely accepted international currency. The Chinese government's rigid controls were a major obstacle for years.

The PBOC sets a midpoint value for the yuan against the US dollar every day, allowing it to trade within 2% of that price. This control is intended to maintain the value of the yuan at a favorable level.

Some economists believe that these controls keep the yuan artificially devalued, making the country's exports more attractive.

RMB is the official currency of China, literally meaning "people's currency" in Mandarin. It's the name of China's currency, just like sterling is the currency of Great Britain.

A unit of renminbi is a CNY, which is similar to how the pound is the basic unit of sterling. This might seem confusing, but it's a common analogy used to explain the difference.

The Chinese yuan can be divided into 10 jiao or 100 fen, making it a bit more complex than other currencies. In practice, this means you can have smaller denominations of the currency.

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CNY is the official currency abbreviation for the Chinese yuan under the ISO 4217 standard, but RMB is often used as an unofficial abbreviation. This might lead to some confusion, but it's not unusual for countries to have multiple abbreviations for their currency.

The Chinese yuan might trade for a different price in offshore markets such as Hong Kong due to China's cross-border currency controls. This is where the unofficial abbreviation CNH comes in, to distinguish between the onshore and offshore prices of the currency.

The Chinese yuan, also known as the renminbi, is a currency with some unique characteristics. The People's Bank of China (PBOC) sets a midpoint value against the U.S. dollar every day, allowing the price of the yuan to trade within 2% of that price.

The PBOC may also adjust the midpoint based on "counter-cyclical" factors, which are not clearly defined. This has led some economists to believe that the yuan is artificially devalued, making the country's exports more attractive.

The International Monetary Fund (IMF) reported in 2018 that the Chinese yuan was in line with fundamentals, but its value dropped to a 13-month low in response to the escalating tariff war with the United States.

The U.S. Treasury labeled China as a "currency manipulator" in 2019, but removed this designation the following year. The Chinese yuan lost value during the COVID-19 pandemic, suffering its largest-ever monthly price drop in April 2022, losing 7% of its value over three months.

The RMB is one of the top five most-used currencies in the 2020s, along with the U.S. dollar, euro, yen, and British pound. The IMF increased the weight of the yuan in its Special Drawing Rights basket in 2022, an international reserve asset that the IMF created as a supplement to member countries' official reserves.

Here's a list of countries that have allowed the renminbi to circulate as an official currency or in border provinces:

On 21 July 2005, China finally lifted the peg with the US dollar, causing an immediate one-time renminbi revaluation to ¥8.11 per dollar.

The exchange rate against the euro stood at ¥10.07060 per euro after the peg was lifted.