There are 10 jiao in a yuan, like dimes in a dollar, and 10 fen in a jiao. In the event you do receive counterfeit money, I’d take it directly to the nearest police station without starting a fuss with whoever gives it to you. They can easily manage the situation from there, especially if you received the bills from a black market currency dealer outside a bank. When traveling internationally, there’s always the risk of receiving fake currency as you are targeted as an “unbeknownst traveler.” Luckily in China, the risk of getting your hands on fake RMB is really low. Officially, the renminbi (RMB) is the official currency of China, which translates as “the People’s Currency”.
Final Thoughts Chinese Money
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.
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- This initiative aligns with China’s broader economic strategy, including the Belt and Road Initiative (BRI), which aims to enhance economic cooperation and trade between China and other countries in the region.
- The People’s Bank of China (PBOC) is responsible for issuing the renminbi and managing the country’s monetary policy.
- Approximately 1.376 trillion yuáns (5.5%) of the currency reserves exist in gold reserves.
- It can be purchased through certain banks in select Chinese cities as well as through online payment services WeChat and Alipay.
- 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.
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.
Currency reserves for the Renminbi yuán
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.
- These names include the official ISO 4217 code CNY and the abbreviated form RMB.
- 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.
- Instead, you should expect to pay a significant premium on the exchange rate that you would receive from a licensed currency exchange shop.
- This move was seen as a major step towards liberalizing the Chinese economy and making the yuan a more international currency.
- Exchanging money for renminb if actually requires quite a bit of strategy if you want to get the most bang for your buck.
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.
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.
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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.
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.
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.
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.
The Future of the Digital Yuán
While in mba asap finance guide 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. 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.
How Much Is $1 in Chinese Renminbi?
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.