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. 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. In China notes are preferred to coins, especially in rural areas, though historically, and up until only Forex swap fees about 140 years ago, the coin with the hole in the middle was currency. In the other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider.
Remitly is on a mission to make international money transfers faster, easier, more transparent, and more affordable. Since 2011, millions of people have used Remitly to send money with peace of mind. The Chinese yuan has special signs that help with trading both in China and other countries. All over the world, people use the ISO code CNY to show it comes from mainland China.
- The remaining provincial banknotes bore the words “Local Currency”.
- Officially, the renminbi (RMB) is the official currency of China, which translates as “the People’s Currency”.
- The yuan is subdivided into smaller units called jiao and fen.
- This guide looks at the exchange rate, history, and importance of China’s currency.
These measures are part of China’s broader efforts to integrate more deeply into the global economy and enhance the international role of the yuan. These denominations facilitate a wide range of transactions, from small purchases to larger financial dealings. The variety of banknotes and coins helps cater to different needs within the economy, ensuring convenience and efficiency in everyday transactions.
See the best Chinese yuan renminbi exchange rates
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. However, it is important to recognize that although physical bills are still very much in circulation in China, mobile payment options such as WeChat Pay and Alipay are becoming more and more common. 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. Chinese paper money comes in denominations of one, five, ten, twenty, fifty and one hundred.
An exceptionally large number of banknotes were issued during the Republican era (1911–1949) by provincial banks (both Nationalist and Communist). The yuan was derived from the Spanish dollar or Mexican dollar, worth eight Spanish reales and popularly known as the piece-of-eight. You’ll now see the value of the converted currency according to the most recent exchange rate. During the period of a controlled economy, the Chinese Yuan Renminbi was pegged to unrealistic exchange values, leading to stringent currency regulations. As China’s economy began opening up in 1978, the Yuan Renminbi was primarily utilised domestically, prompting foreigners to resort to exchange certificates, which consequently fostered a thriving black market. When Qin Shihuang, the First Emperor, united China in 221 BC round coins with a square hole in the middle were introduced and this form of currency was used until around 1890.
China Currency: 2025 Guide to Use & Exchange Chinese RMB
The term “Chinese yuan renminbi” refers to both the real and symbolic parts of China’s money system. The People’s Bank of China issues it and manages the country’s money policy. The yuan is well-known in international markets because of China’s strong economy.
The most widespread international usage is yuan, which is abbreviated to CNY. 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. Some economists believe that these controls keep the yuan artificially devalued, making the country’s exports more attractive.
Convert CNY to USD at the real exchange rate
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. Beware of bad exchange rates.Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. Our smart tech means we’re more efficient – which means you get a great rate.
Paying by credit or debit card in China
- The currency of China often generates confusion due to its dual names – the yuan and the renminbi (RMB).
- In 1914, the Republic of China established the Silver Dollar as its official currency, complemented by the introduction of copper, fen, and nickel coins during the 1930s.
- You can get major currency account details for a one-off fee to receive overseas payments like a local.
- Later, they allowed it to be used more in foreign exchange markets.
These developments have led to intense speculation that the renminbi will soon become one of the major international currencies. In terms of size and dynamism, the economy of the People’s Republic of China (PRC) stands out among the emerging markets. It has already become the world’s second-largest economy and is now one of the largest contributors to global growth. If the PRC continues on its present growth track, it may soon takeover from the United States as the world’s largest economy. The official name for Chinese currency is Renminbi, which literally translates to People’s Currency and is abbreviated to RMB.
China’s central bank devalued its currency last week, sending major stock markets in Asia and Europe down, and sparking fears of additional exchange rate devaluations in other countries. It is the largest devaluation in China’s system in over 20 years. When reading news and analysis of web application architecture best practices this event, you might see both terms—“renminbi” and “yuan”—used interchangeably. The renminbi is the official currency of the People’s Republic of China, and translates to “people’s money.” Its international symbol is CNY (or CNH in Hong Kong; but abbreviated RMB, with the symbol ¥).
In 1948, the Gold Yuan replaced the Fǎbì, marking a conversion rate of 1 Gold Yuan to 3 million Yuan Fǎbì. Simultaneously, the Yuan Renminbi (commonly referred to as RMB) was introduced to stabilise the Communist-controlled regions of mainland China. Subsequently, in 1955, a re-evaluation occurred, resulting in the introduction of a new Yuan Renminbi at a rate of 1 new Yuan to 10,000 old Yuan. For higher level transactions, ingots of silver were commonly used. Learn why a Texas registered agent is required, how to pick the right one, and the benefits of using a professional service for your business. Hong Kong is considered part of the offshore market and thus trades using CNH.
renminbi
New visitors might feel frustrated by hidden fees, especially when they use foreign currency. You should also be careful with debit card payments since they can come with extra charges. It looks at foreign reserves and how exchange rates are set. In its early years, the yuan was pegged to the US dollar at a fixed exchange rate set by the PBOC. This meant that the value of the yuan was directly tied to the value of the US dollar, and it was not allowed to fluctuate freely on the foreign exchange market. This pegging helped stabilize the Chinese economy during a period of significant change and development.
The term Renminbi (RMB) covers all of the currency, while the yuan is the basic unit. This is like how pounds and sterling work in the United Kingdom. When you travel, you often see yuan in stores and at currency exchanges.
When dealing with banking or official documentation in China, references to RMB frequently arise instead of yuan because RMB denotes the entire monetary framework. This distinction is critical for avoiding errors during international transactions where even minor misunderstandings can lead to discrepancies. The Chinese yuan renminbi is the currency used in the People’s Republic of China. Yuan is the actual unit of currency for China’s financial system and economy, representing a single unit of money.
The foreign exchange reserves help keep the yuan strong around the world. A strong yuan influences how much tourists are able to spend. In global trade and finance, misunderstanding these terms can lead to the ultimate beginner’s guide to forex backtesting errors in communication. Internationally, CNY (Chinese Yuan) is used for cross-border transactions and foreign exchange markets because it’s recognized under ISO standards.
We promise all our tours have no hidden fees, no shopping stops, no touristy restaurants, just memorable experiences! Learn more about us or contact us to start planning your perfect China trip. Travelers to China are often confused by how to refer to Chinese money. In English, some people call it the Chinese “dollar.” In Chinese, there are three common names and two symbols in regular use. One Chinese yuan is worth 13.7 U.S. cents as of April 11, 2025.