While in China, you’ll use practically every bank note that exists. 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. Although it’s still possible to pay with cash in China, mobile payment options enjoy growing popularity. macd trading strategy 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.
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- At present, banknotes in denominations of one, five, 10, 20, 50, and 100 yuan are in circulation.
- Today, the yuan is one of the most widely traded currencies in the world and is considered a major player in the global economy.
- There are a few reasons for this, including the fact that Chinese banks will not always accept traveler’s checks.
- 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.
- However, the locations that will accept US dollars are typically those that cater to foreign tourists, including large hotels and tourism operators.
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. Additionally, cash can usually also be exchanged at hotels, though the rates are often unattractive.
Yuan vs. Renminbi: An Overview
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 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. If you are traveling to China for the first time, you might be wondering whether or not to bring any cash.
It comes down to the difference between currency and units of currency. The various different names used to refer to the Chinese currency can be confusing for the uninitiated. 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. Some economists believe that these controls keep the yuan artificially devalued, making the country’s exports more attractive.
The word renminbi came into use the same year the People’s Republic of China was founded, in 1949. The word yuan, however, is much older, and was originally used to refer to the silver coins that European merchants used to trade with Chinese merchants almost 500 years ago. 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. CNY is the official currency abbreviation for the Chinese yuan under the ISO 4217 standard, but RMB is often used as an unofficial abbreviation.
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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. There are limits to the amount of cash travelers can bring into China. Realistically, you will usually not need to bring much cash at all with you, however. USD is not accepted in China, so you are unlikely to need it during your trip.
Final Thoughts Chinese Money
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. 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 price of the yuan is permitted to trade within 2% of that price.
Banknotes and Coins
For the sake of easy carriage, the bank staff will always give you some big notes. 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. 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.
Although they look quite different, the characters 壹圆 (yī yuán) are actually the same as 一元 (yī yuán). Unfortunately, however, neither the word “yuan” nor the word “renminbi” is commonly used in China. Today, renminbi is the general name for the Chinese currency, while yuan is the name of a unit of that currency.
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. In most cases, you will have to pay a small fee when withdrawing money using international cards. Both the Qing dynasty and early Republican government circulated silver yuan coins and banknotes.
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. 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. It can be purchased through certain banks in select Chinese cities as well as through online payment services WeChat and Alipay. 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 various different names used to refer to the Chinese currency can be confusing for the uninitiated.
- Additionally, cash can usually also be exchanged at hotels, though the rates are often unattractive.
- Regardless, you still want to travel smart and here are some tips on how to avoid fake Chinese currency.
- This word was also used for the silver Spanish dollars introduced by European merchants in the 17th and 18th centuries.
China’s official currency, the renminbi (RMB), can seem incredibly confusing to foreigners. Even the name “renminbi” is hard for a lot of people to pronounce correctly. This article is part of our free series on foreign currency bank accounts.
Because of this, at least for now, mobile payment apps are generally only useful for expats moving to China. Since they are able to open a bank account in China, they can make use of WeChat and Alipay’s mobile payment system. Chinese currency is not freely convertible, which means the exchange rate of RMB is sometimes affected by the government and can be difficult to predict. 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. However, the Chinese renminbi is often referred to using different names.
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. 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.
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. Overall, the digital yuan represents a significant development in the history of Chinese currency. It is expected to play a major role in shaping the country’s financial system and promoting economic growth in the years to come. As China continues to innovate and adapt to the digital age, the digital yuan will likely become an integral part of the Chinese economy and its international trade relations. 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.
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.