Renminbi Wikipedia

Whether you know it as a yuan or renminbi, what matters is that the currency from China remains a central part of the world economy. The digital yuan, or e-CNY, is only available to users of certain banks in certain Chinese cities. As of April of 2022, the digital yuan app is available in 23 Chinese cities, and the digital yuan can be purchased through seven Chinese banks, as well as the online payment services WeChat and Alipay. The word “yuan” is frequently used in Mandarin translations of foreign currencies.

  1. In mainland China, it’s officially called the Chinese yuan renminbi (CNY).
  2. Today, the RMB is one of the top-five most-used currencies, in addition to the U.S. dollar, euro, yen, and British pound.
  3. So, if you are planning any travel to more rural provinces of China, you should make sure that you convert money before departing.
  4. With this in mind, it is generally advised to either convert your foreign currency into Chinese renminbi before traveling or do so when you arrive in the country.
  5. If you look closely at a 1 yuan banknote, however, you will see the characters 壹圆 (yī yuán) under the “1” in the middle to the left of Mao’s portrait.

In addition, although you will see the word “yuan” written in Chinese pinyin, you won’t see the character for yuan (元) anywhere. When telling someone how much something costs, you would be unlikely to say “This car costs 10 gold.” You need some sort of unit, such as ounces. Then you could say, “This car costs 10 ounces of gold.” In this example, gold is the currency, and ounce is the unit. Technically, though, RMB is the name of the Chinese currency (like US Dollar), while CNY is a unit of that currency (like “bucks” or “dollars”). Confusingly, however, it’s possible that you may also have heard Chinese money referred to as “yuan” (元 yuán), commonly abbreviated as CNY (“Chinese Yuan”). Read on to discover the different between Chinese renminbi (RMB) and yuan (CNY) and learn to talk about China’s currency in both English and Chinese.

Alternative words

Improving current account balance during the latter half of the 1990s enabled the Chinese government to maintain a peg of ¥8.27 per US$1 from 1997 to 2005. As of 2019, renminbi banknotes are available in denominations from ¥0.1, ¥0.5 (1 and 5 jiao), ¥1, ¥5, ¥10, ¥20, ¥50 and ¥100. These denominations have been available since 1955, except for the ¥20 notes (added in 1999 with the fifth series) ¥50 and ¥100 notes (added in 1987 with the fourth series).

Banknotes were issued in yuan denominations from the 1890s by several local and private banks, along with the Imperial Bank of China and the “Hu Pu Bank” (later the “Ta-Ch’ing Government Bank”), established by the Imperial government. During the Imperial period, banknotes were issued in denominations of 1, 2 and 5 jiao, 1, 2, 5, 10, 50 and 100 yuan, although notes below 1 yuan were uncommon. In 1955, the RMB was revalued, meaning that each new yuan was equal to 10,000 units of the old yuan currency. This revaluation was essential in stabilising the economy and encouraging economic growth in the country.

How much cash should I bring to China?

As a result, China has become one of the largest foreign holders of U.S. China used to peg its currency to the U.S. dollar (USD), its largest trade partner. It now manages its exchange rate against a basket of currencies from its largest trading partners, weighted by the amount of trade they do with each. Currently, the USD still has the largest weighting in that basket. Banks in Hong Kong allow people to maintain accounts in RMB.[85] Because of changes in legislation in July 2010, many banks around the world[86] are now slowly offering individuals the chance to hold deposits in Chinese renminbi. Beginning in the mid-1980s, the government sanctioned foreign exchange markets, known as swap centres, eventually in most large cities.

In essence, it prevents economic instability from collapsing markets in times of crisis or trepidation. This leads to more stability regarding import/export taxes, currency exchanges and ensures there are enough swing trading vs day trading resources available both at home and abroad regardless of whichever currency an investor may decide to use. China’s official currency is called Renminbi — it’s also known as the “people’s currency”.

一元 is “one yuan.” Why doesn’t my money say 一元?

In 1948, the Central Bank of China issued notes (some dated 1945 and 1946) in denominations of 1, 2 and 5 jiao, 1, 5, 10, 20, 50, and 100 yuan. In 1949, higher denominations of 500, 1000, 5000, 10,000, 50,000, 100,000, 500,000, 1,000,000 and 5,000,000 yuan were issued. The Central Bank of China issued notes in denominations of 1 and 5 fen, 1, 2 and 5 jiao, 1, 5 and 10 yuan. To most people, the yuan and renminbi are essentially the same. Technically, the yuan is a unit of measurement for the renminbi. It’s similar to how the British currency is the “pound sterling,” but prices are typically stated in “pounds.”

In most cases, you will have to pay a small fee when withdrawing money using international cards. It is even possible to spend an entire day paying for everything with a smartphone instead of cash. Even the owners of small vegetable stalls in traditional wet markets accept mobile payments. Today, renminbi is the general name for the Chinese currency, while yuan is the name of a unit of that currency.

Chinese currency

On notes, coins and documents such as contracts, to make it less easy to alter it is mostly written with the coin’s original name, 圓 / 圆. In international contexts, ‘¥’ or ‘RMB’ (abbr. for renminbi) is often prefixed to the amount (e.g. https://bigbostrade.com/ RMB¥100 or ¥100元). When China’s central bank sells Treasurys, it lowers the dollar’s value by increasing the supply of dollar-denominated assets. In the late 1980s and early 1990s, China worked to make the renminbi more convertible.

For most of its early history, the renminbi was pegged to the U.S. dollar at ¥2.46 per dollar. During the 1970s, it was revalued until it reached ¥1.50 per dollar in 1980. When China’s economy gradually opened in the 1980s, the renminbi was devalued in order to improve the competitiveness of Chinese exports. Thus, the official exchange rate increased from ¥1.50 in 1980 to ¥8.62 by 1994 (the lowest rate on record).

In Mandarin Chinese, the character yuan is used for round or circular things. This word was also used for the silver Spanish dollars introduced by European merchants in the seventeenth and eighteenth centuries. Use our currency converter to see how much your money is worth in Chinese yuan and familiarise yourself with the mid-market rate before your trip. Get your Wise travel money card online for free, to send and spend money around the world at the real exchange rate. The Wise Chinese yuan travel money card lets you top up in your local currency, and switch to yuan to spend when you’re in China. You’ll get the best rate for spending in Chinese yuan – and can also hold and spend 40+ other currencies with the same card.

At the same time, the government introduced measures to allow retention of part of the foreign exchange earnings from non-trade sources, such as overseas remittances, port fees paid by foreign vessels, and tourism. The Chinese economy relies on its two currency system to regulate the exchange rate of its money and maintain control over foreign investments. The Chinese Renminbi (RMB) is used for domestic transactions within Mainland China, whereas the Chinese Yuan (CNY) is used for international transactions outside the mainland.

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