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. The modern-day Chinese yuan uses the abbreviation CNY to distinguish between the mainland currency and other uses of the word. The character yuan is used for round or circular things in Mandarin Chinese.
The Future of the Digital Yuán
Due to inflation, banknotes or coins with a value of less than one yuan, including one jiao and five jiao, are rarely used in China. If someone insists on you paying the small change, you can just give them one yuan and tell them to keep the change instead. Learn more about managing payments while traveling in China here. The primary unit of the Renminbi is the yuan, represented by the symbol 元.
- One way to understand this is to imagine a country that uses gold as its currency.
- 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.
- Learn more about us or contact us to start planning your perfect China trip.
- The character yuan is used for round or circular things in Mandarin Chinese.
- 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?
At the heart of Chinese currency is the Renminbi (RMB), which translates to “People’s Currency.” This term is commonly used to refer to the official currency of the People’s Republic of China. The Renminbi is issued by the People’s Bank of China and serves as the legal tender for all transactions within the country. Denoted by the symbol 元, pronounced as “yuan,” it is subdivided into smaller units known as jiao and fen.
Yuan (CNY)
The term “yuan” has historical significance, dating back to the Ming dynasty. It is derived from the silver ingot, a form of currency during that era. Today, the yuan banknotes and coins are widely used in everyday transactions, and its international symbol is CNY (Chinese Yuan).
As for the 壹 (yī), it is just another, more complicated form of 一 (yī) that is used by bankers in China as an anti-fraud measure since it is harder to alter than the simple 一 (yī). In addition, although you will see the word “yuan” written in Chinese pinyin, you won’t see the character for yuan (元) anywhere. 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”). 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. The IMF increased the weight of the yuan in its Special Drawing Rights (SDRs) basket in 2022, an international reserve asset that the IMF created as a supplement to member countries’ official reserves. The Chinese yuan wasn’t considered an international currency for years because of the Chinese government’s rigid controls.
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. However, the Chinese renminbi is often referred to using different names. These Top Forex Brokers names include the official ISO 4217 code CNY and the abbreviated form RMB. To clarify, both CNY and RMB refer to the same currency, the Chinese renminbi. 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.
Commonly used bank notes and coins in China
At present, banknotes in denominations of one, five, 10, 20, 50, and 100 yuan are in circulation. 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. 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.
- That said, there’s still a great deal of confusion when it comes to Chinese currency.
- The currency allowed the new administration to unify the Chinese economy, which was then divided among several regional currencies.
- So, if you are planning any travel to more rural provinces of China, you should make sure that you convert money before departing.
- However, the locations that will accept US dollars are typically those that cater to foreign tourists, including large hotels and tourism operators.
- The official name for Chinese currency is Renminbi, which literally translates to People’s Currency and is abbreviated to RMB.
In addition to paper currency, China has a long history of using coins as a medium of exchange. Historically, different dynasties issued various forms of coins, each bearing unique symbols and designs. Today, the most commonly used coins in China are the 1 yuan, 5 jiao, and 1 jiao coins.
The People’s Bank of China has exclusive authority to issue currency. Banknotes are issued in denominations from 1 fen to 100 renminbi. 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 yuan is further divided into smaller units called jiao (角) and fen (分). One yuan is equivalent to ten jiao, and one jiao is further divided into ten fen. While jiao is a less frequently used unit, fen is the smallest denomination and is rarely seen in circulation. If you are looking to exchange Iranian rial into Chinese renminbi, it is important to note that Iran does hold the cheapest currency in the world. So, if you happen to hold any rial and are looking to exchange into Chinese currency, it might be difficult to facilitate. The official name for Chinese currency is Renminbi, which literally translates to People’s Currency and is abbreviated to RMB.
The most widespread international usage is yuan, which is abbreviated to CNY. If you are traveling to China for the first time, you might be wondering whether or not to bring any cash. Although it’s still possible to pay with cash in China, mobile payment options enjoy growing popularity. The character 圆 (yuán) is a variant of 元 (yuán) and the two share the same pronunciation.
Can You Use Foreign Currency in China?
In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies. This article is part of our free series on foreign currency bank accounts. Travelers to China are often confused by how to refer to Chinese money.
Basically, the Chinese government doesn’t like to see big fluctuations in the Renminbi’s exchange rate and will intervene from time to time to avoid this. Here you can find the real-time official exchange rate of RMB, which is also the rate that will be used when you exchange RMB while traveling in China. 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. The other denominations of Chinese banknotes also replace the regular Chinese number characters with which you may be familiar with special fraud-resistant characters.
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”). There is, in fact, very little practical difference between the terms RMB (renminbi) and CNY (Chinese yuan), and you will often hear these two words used interchangeably. CNY is the official currency abbreviation for the Chinese yuan under the ISO 4217 standard, but RMB is often used as an unofficial abbreviation. A storekeeper in China might also express prices in terms of kuai, which translates into “pieces” and is similar to how Americans use “bucks” to mean dollars. The People’s Bank of China (PBOC) was established during the Chinese Civil War.
This word was also used for the silver Spanish dollars introduced by European merchants in the 17th and 18th centuries. This recognition marked a milestone in the Renminbi’s journey toward becoming a global reserve currency. In the following sections, we will provide a detailed overview of the renminbi, answer questions from our members, share the best ways to exchange renminbi after you touch down in China, and additional insights. The China Guide is a Beijing-based travel agency that customizes private tours, educational student tours, and incentive trips across China. We have more than ten years of experience crafting tours for tens of thousands of travelers from the United States, Canada, Australia, the United Kingdom, Germany, France, Spain, and beyond.
For this reason, traders often use the abbreviation CNH in order to refer to the price of renminbi outside of the country. 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.
