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.
The unofficial abbreviation CNH is sometimes used to refer to the offshore price of the Chinese yuan to distinguish between these two prices. 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. The digital yuan is also expected to promote financial inclusion in China by providing access to financial services for people who do not have traditional bank accounts.
Should you receive fake notes in a taxi, ask for your receipt and also take note of the driver’s license plate before going your separate ways. The People’s Bank of China has implemented several security features to help identify genuine notes. Although nowadays most people in China don’t carry much cash with them, everybody is still familiar with the various bank notes available. Officially, the renminbi (RMB) is the official currency of China, which translates as “the People’s Currency”. China is at the forefront of developing a digital currency bitcoin mining explained called Digital Currency Electronic Payment (DC/EP).
These reforms aim to enhance the stability and internationalization of the renminbi, ensuring its continued relevance in the global economy. Reforms include liberalizing interest rates, improving regulatory frameworks, and promoting transparency in financial markets. These measures are designed to create a more robust and resilient financial system capable of supporting China’s economic ambitions and mitigating potential risks. Currency has also been a part of Chinese art, with historical coins and banknotes featured in various artistic expressions.
Following the fall of the Qing Dynasty in 1912, the Republic of China was established, and the country saw substantial monetary reforms. The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies. For the sake of easy carriage, the bank staff will always give you some big notes. 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.
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It plays a crucial role in the country’s economic system and has significant global trade and finance implications. Managed by the People’s Bank of China, the renminbi has undergone extensive reforms and internationalization efforts, reflecting China’s growing influence in the global economy. 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. There are a few reasons for this, including the fact that Chinese banks will not always accept traveler’s checks.
The value of the RMB was tightly controlled during the period of the command economy. 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. In recent years, the Chinese government has been exploring the use of digital currency as a way to modernize its financial system and promote economic growth. The digital yuan, also known as the e-CNY, is a digital version of the Chinese currency designed for electronic payments and other financial transactions. Although credit cards never took off in China, mobile payment apps have become the primary way to pay for things in major Chinese cities in recent years. Chinese companies like Tencent and Alibaba have been instrumental in the development and widespread adoption of mobile payment apps such as WeChat Pay and Alipay.
Additionally, the digital Yuan leverages blockchain technology to enhance transparency and traceability, making it more difficult for illicit activities to go undetected. This robust security framework fosters user confidence and promotes widespread adoption. China has incorporated several anti-counterfeiting features to ensure its currency’s authenticity. These include holograms, microprinting, textured printing, and ultraviolet (UV) light features.
Anti-Counterfeiting Features
When you check online or visit banks to see the exchange rate for Chinese RMB, you may also see it written out as ¥ or 元, both of which are symbols or the “dollar signs” for RMB. This includes a detailed explanation of what Chinese currency is called as well as the available bank notes and coins. The digital Yuan offers several benefits, including increased transaction speed, reduced costs, and enhanced security. It also gives the government better control over the money supply and the ability to combat money laundering and tax evasion.
- Because of this, at least for now, mobile payment apps are generally only useful for expats moving to China.
- The ISO 4217 code “CNY” (Chinese Yuan) for international financial transactions denotes the Yuan.
- For the sake of easy carriage, the bank staff will always give you some big notes.
- That said, there’s still a great deal of confusion when it comes to Chinese currency.
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”). 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. As of April 2025, the Chinese yuan has fallen to its lowest level vs. the U.S. dollar since 2007 amid an escalating U.S.-China trade war. The Chinese yuan lost value during the COVID-19 pandemic, largely due to reduced economic activity and strict lockdowns.
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Because the punishment for distributing fake Chinese yuan is extremely high (in some cases, the death penalty). These strict penalties were established by the Chinese Communist Party to maintain the integrity of the national currency. You may need to get a little cash at the airport kiosk when you land to pay for a taxi, but then you’ll want to pull from an ATM or go to a nearby bank to get the rest of your cash.
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The currency will be available through various channels, including mobile phones and online platforms, making it accessible to a broader segment of the population. 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. To help you with this, let’s take a look at how to exchange money into Chinese currency now.
Special Considerations
Today, the yuan is one of the most widely traded currencies in the world and is considered a major player in the global economy. The Chinese government continues to play a significant role in managing the currency, but it has also taken steps to allow it to float more freely on the foreign exchange market. This evolution reflects China’s growing influence in international trade and its strategic efforts to position the yuan as a key international currency.
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- The RMB is one of the top five most-used currencies in the 2020s, in addition to the U.S. dollar, euro, yen, and British pound.
- Below are a few of the most common questions we receive from people looking into what the currency of China is.
- This inclusion marked a significant milestone in the yuan’s internationalization and recognized its importance in the global financial system.
- However, the locations that will accept US dollars are typically those that cater to foreign tourists, including large hotels and tourism operators.
- In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.
- Should you receive fake notes in a taxi, ask for your receipt and also take note of the driver’s license plate before going your separate ways.
Exchanging money for renminb if actually requires quite a bit of strategy if you want to get the most bang for your buck. Once you’ve got your renminbi in hand, be sure to take some time to examine it and think about its history, its future and all the different ways there are to refer to it in both English and Chinese. Paying for things in a new currency in a new country can be exciting, but be sure you have a good idea of how much you’re actually paying in your own currency equivalent before you spend. If you are traveling to China for the first time, you might be wondering whether or not to bring any cash. If you plan to stay in China for an extended period of time, setting up a WeChat Pay or Alipay account will definitely make your life much easier. If you find the difference between currency and units confusing, it might seem like a good idea to figure out which word for money is most popular in China and use that one.
So, if you happen to hold any rial and are looking to exchange into Chinese currency, it might be difficult to facilitate. 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. The word renminbi came into use the same year the People’s Republic of China was founded, in 1949.
Objectives and Tools of the PBOC
That said, China imposes strict currency controls on the currency domestically, which can result in renminbi trading at a different price inside and outside of the country. For this reason, traders often use the abbreviation CNH in order to refer to the price of renminbi outside of the country. China uses currency controls to maintain the value of the Chinese yuan at a favorable level. The PBOC sets a midpoint value against the U.S. dollar every day based on previous trading sessions and movements in international currency markets. The midpoint might also be adjusted based on undefined countercyclical factors at times.
