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.
CNY is the official currency abbreviation for the Chinese yuan under the ISO 4217 standard, but RMB is often used as an unofficial abbreviation. However, trade disputes with China continued during Joe Biden’s presidency, with tariffs on electric vehicles, solar cells and semiconductors, and other technology products. Trump returned to office in January 2025 and announced new tariffs on China. 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. We promise all our tours have no hidden fees, no shopping stops, no touristy restaurants, just memorable experiences!
- Learn more about managing payments while traveling in China here.
- The Chinese yuan wasn’t considered an international currency for years because of the Chinese government’s rigid controls.
- Then you could say, “This car costs 10 ounces of gold.” In this example, gold is the currency, and ounce is the unit.
- As China continues to assert itself as a major player in the global economy, the Renminbi’s role is expected to expand.
The Chinese Renminbi Yuán
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.
- One way to understand this is to imagine a country that uses gold as its currency.
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- 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.
- If you are traveling to China for the first time, you might be wondering whether or not to bring any cash.
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.
Although it’s still possible to pay with cash in China, mobile payment options enjoy growing popularity. 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. Today, renminbi is the general name for the Chinese currency, while yuan is the name of a unit of that currency. One way to understand this is to imagine a country that uses gold as its currency.
What Is the Chinese Yuan Renminbi (CNY)?
The most widespread international usage is yuan, which is abbreviated to CNY. With China’s inclusion in the IMF’s Special Drawing Rights (SDR) basket, the global financial implications of the Renminbi’s position are now a topic of significant interest and analysis. As of October 1, 2016, the Renminbi holds a significant position in the IMF’s Special Drawing Rights (SDR) basket, reflecting China’s growing economic influence.
Chinese Currency & Money Exchange
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. The various different names used to refer to the Chinese currency can be confusing for the uninitiated. Some economists believe that these controls keep the yuan artificially devalued, making the country’s exports more attractive.
Renminbi in SDR
In international trade, the symbol is used to denote the Chinese yuan, and its increasing presence on the global stage underscores China’s growing importance in the world economy. China’s influence is further reflected in the adoption of Chinese symbols for personal names, which has gained popularity among individuals outside China seeking to connect with its rich culture. This trend not only highlights the globalization of Chinese language and symbols but also showcases the country’s soft power through cultural exchange. As economic ties strengthen, understanding and utilizing these symbols may enhance communication and foster deeper relationships in international business dealings. As China’s economic influence expands, the yuan’s status as a reserve currency is gaining traction among investors and governments alike.
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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. 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. 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. 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.
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Approximately 1.376 trillion yuáns (5.5%) of the currency reserves exist in gold reserves. The remainder consists of foreign currencies, special drawing rights in the International Monetary Fund and other reserve positions. 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. The midpoint might also be adjusted based on undefined countercyclical factors at times.
How do people in China refer to their money?
For this reason, traders often use the abbreviation CNH in order to refer to the price of renminbi outside of the country. Importantly, if you are attempting to use foreign currency in China, the exchange rate that you will receive directly from vendors will not be in your favor. Instead, you should expect to pay a significant premium on the exchange rate that you would receive from a licensed currency exchange shop. Instead, it is managed through a floating exchange rate, which means it is allowed to float in a narrow margin around a fixed base rate determined with reference to a basket of world currencies.
The People’s Bank of China (PBOC) was established during the Chinese Civil War. It issued the first RMB notes in December 1948, about a year before the Chinese Communist Party defeated the Kuomintang government. The Best monthly dividends 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. This word was also used for the silver Spanish dollars introduced by European merchants in the 17th and 18th centuries. Road Initiative and the establishment of offshore Renminbi centers indicate a concerted push toward a more prominent global role for the currency.