It can be purchased through certain banks in select Chinese cities as well as through online payment services WeChat and Alipay. The Chinese yuan wasn’t considered an international currency for years because of the Chinese government’s rigid controls. This began to change as the Chinese government began to promote international use of the RMB. The currency allowed the new administration to unify the Chinese economy, which was then divided among several regional currencies. It also distinguished the new administration from the previous government, whose policies had led to high levels of hyperinflation. Along with printing the currency, the bank is responsible for monetary and fiscal policy as well as financial regulation in China.
The official currency of China is the Renminbi, abbreviated as RMB, with the Yuan (¥) as its basic unit. The RMB is integral to the Chinese economy and has significant implications for international finance. That said, in certain instances, it may be possible to use certain foreign currencies like US dollars. However, the locations that will accept US dollars are typically those that cater to foreign tourists, including large hotels and tourism operators. If you only plan to stay in China for a short time, however, you should be able to withdraw cash at most Chinese ATMs using major credit cards such as Visa or Mastercard.
Meanwhile, the Hong Kong currency name, the Hong Kong dollar, continues to play a vital role in the region’s financial landscape, Best semiconductor stock facilitating trade and investment. Together, these currencies reflect the dynamics of a rapidly changing global economy. Having gained traction in international trade, the renminbi is exerting a significant impact on global markets. As China’s economy continues to grow and open up, the renminbi’s influence on global financial markets is becoming more pronounced. Now, the best way to convert foreign currency, including USD, the British pound, and other major currencies, into renminbi is in the form of cash.
- As noted above, the term “yuan” refers to a single unit of the currency, while the term “renminbi” refers to the actual name of the currency itself.
- If you aren’t quite sure how to use Chinese mobile payment platforms, you’ll be pleased to know that China does still accept cash.
- Even the owners of small vegetable stalls in traditional wet markets accept mobile payments.
Yuan (CNY)
An understanding of the distinction between Renminbi and Yuan is essential for navigating the complexities of China’s currency system. Below are a few of the most common questions we receive from people looking into what the currency of China is. If you have further questions you would like to ask our team, don’t hesitate to get in touch. Over the past week, the closing price fluctuated between 7.12 and 7.13 yuáns. Anne Meredith holds an MA in International Politics and Chinese Studies from the Johns Hopkins School of Advanced International Studies (SAIS). As part of the graduation requirements for the program, Anne wrote and defended a 70-page Master’s thesis entirely in 汉字 (hànzì; Chinese characters).
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- Thus, it would join the U.S. dollar, the euro, the British pound sterling, and the Japanese yen as one of the IMF’s Special Drawing Rights currencies used for intergovernmental loans.
- The term “yuan renminbi,” though, is a lot like the terms “pound sterling” and “pound,” which are used to describe the currency of the United Kingdom.
- If you have further questions you would like to ask our team, don’t hesitate to get in touch.
- China uses currency controls to maintain the value of the Chinese yuan at a favorable level.
- The other denominations of Chinese banknotes also replace the regular Chinese number characters with which you may be familiar with special fraud-resistant characters.
The term “yuan renminbi,” though, is a lot like the terms “pound sterling” and “pound,” which are used to describe the currency of the United Kingdom. There are currency exchange booths at most major airports in big cities, so you could bring a small amount of your own currency with you and exchange it at the airport when you arrive. Alternatively, you could exchange money in your home country before getting on the plane. It is even possible to spend an entire day paying for everything with a smartphone instead of cash.
The value of the RMB was tightly controlled during the period of the command economy. One yuan was pegged at 2.46 yuan to the U.S. dollar until 1971. The PBOC allowed the yuan to trade on international markets as the Chinese economy began opening to the world market, but the floating exchange rate was still tightly controlled.
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The Renminbi’s growing influence reflects China’s expanding role in global economic affairs. Legally, you are permitted to bring 20,000 CNY, 5,000 USD or the equivalent in other foreign currencies into China with you when you come. Since this number can sometimes change, be sure to check to make sure this is still the case before you travel. Unfortunately, however, neither the word “yuan” nor the word “renminbi” is commonly used in China.
What Is the Currency of China? Your Guide to CNY
The reverse side of most coins, which range in denominations from 1 fen to 1 renminbi, contains images of historic buildings and the country’s diverse landscape. 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 in the 2020s, including the New Taiwan dollar and the Hong Kong dollar. As such, comprehending the significance of the ¥ symbol is essential for businesses and individuals engaged in international trade and finance.
The PBOC management team consists of a governor, six deputy governors, and a chief inspector. China’s national currency is issued by its central bank, the People’s Bank of China (PBOC). The term “Chinese yuan renminbi (CNY)” refers to the currency used in the People’s Republic of China.
Even the question of what to call Chinese money can be puzzling. The Chinese yuan might trade for a different price in offshore markets such as Hong Kong due to China’s cross-border currency controls. The unofficial abbreviation CNH is sometimes used to refer to the offshore price of the Chinese yuan to distinguish between these two prices.
Instead, most people in China refer to their money as “kuài” (块). The CNY went through a steady stream of appreciation against the greenback, leading the country to devalue its currency several times in 2015. Chinese leaders said this was part of the country’s market reform efforts. This, in turn, opened up a trade war with the United States calling China a currency manipulator and then-President Donald Trump imposing tariffs on Chinese goods starting in 2018. China responded with its own set of tariffs on American products. The official name for Chinese currency is Renminbi, which literally translates to People’s Currency and is abbreviated to RMB.
Even the owners of small vegetable stalls in traditional wet markets accept mobile payments. The other denominations of Chinese banknotes also replace the regular Chinese number characters with which you may be familiar with special fraud-resistant characters. You may also notice these more complicated ways of writing numbers on certain official receipts that you get in China. 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.
How Much Is 100 Chinese Yuan to Indian Rupees?
When traveling to China, there are a number of ways that you can exchange foreign money into Chinese currency. That said, it’s important to note that currency exchange will be much easier to facilitate in larger cities. So, if you are planning any travel to more rural provinces of China, you should make sure that you convert money before departing. The official currency of China is the Chinese renminbi with the currency symbol ¥ (or RMB ¥) and ISO 4217 code CNY. That said, the renminbi is often referred to in the abbreviated form of RMB or as the basic unit of currency, the yuan. The renminbi has been legal tender in China since 1948, replacing the Nationalist-issued yuan.