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”). 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. The Chinese yuan lost value during the COVID-19 pandemic, largely due to reduced economic activity and strict lockdowns. The yuan suffered its largest-ever monthly price drop in April 2022, losing 7% of its value over three months.

What Is the Currency of China? Your Guide to CNY

• The modern-day Chinese yuan uses the abbreviation CNY to distinguish between the mainland currency and other uses of the word.
• The renminbi plays a critical role in facilitating international trade and finance, serving as the official currency of the People’s Republic of China.
• The word “yuan” is frequently used in Mandarin translations of foreign currencies.

Learn more about us or contact us to start planning your perfect China trip. Hong Kong’s currency is the Hong Kong Dollar and Macau’s currency is called the Pataca. Just as a tiny seed grows into a mighty oak, the Renminbi has emerged from its historical origins to become a powerful force in the global economy.

As China continues to assert itself as a major player in the global economy, the Renminbi’s role is expected to expand. This development has far-reaching implications for the global economy and underscores China’s growing influence in international finance. This move has not only acknowledged China’s growing economic influence but also expanded the range of options for global financial transactions.

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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 Best cfd trading platform 汉字 (hànzì; Chinese characters).

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.

How do people in China refer to their money?

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.

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This understanding serves as a gateway to comprehending the renminbi’s role in international trade. 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.

The pound sterling is the name of the British currency itself, while pounds are a denomination of the pound sterling. You use pounds to purchase goods and services, not pounds sterling or sterling. Following this example, it’s important to remember that you can refer to the currency in general as the renminbi. The Renminbi’s evolving role in the global financial landscape has substantial ramifications for various stakeholders, shaping future trends and developments in international finance. Renminbi was officially included in the IMF’s Special Drawing Rights (SDR) basket on October 1, 2016, marking a significant milestone in the internationalization of China’s currency. This move reflects the growing importance of the Renminbi in the global financial system.

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.

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.

• Along with printing the currency, the bank is responsible for monetary and fiscal policy as well as financial regulation in China.
• Its symbol, the ¥, represents the strength and stability it brings to international trade and financial markets.
• The term “Chinese yuan renminbi (CNY)” refers to the currency used in the People’s Republic of China.
• This development has far-reaching implications for the global economy and underscores China’s growing influence in international finance.
• 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.
• 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.

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.

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 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.