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.
How to Avoid Fake Renminbi
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. Should you receive fake notes in a taxi, ask for your receipt and also take note of the driver’s license plate before going your separate ways. Both pieces of information can help the police deal justice on your behalf. Each mao or jiao (these words are used interchangeably) is worth 1/10th of 1 RMB. How Chinese use mao or jiao in spoken conversation is similar to how you communicate cents in USD.
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. 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.
- In the rare event you do find yourself worried your money is fake, here is how to determine whether or not this is true.
- 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.
- Take a careful look at a real 100 RMB note and compare it against the one you believe to be counterfeit renminbi.
- 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.
These names include the official ISO 4217 code CNY and the abbreviated form RMB. To clarify, both CNY and RMB refer to the same currency, the Chinese renminbi. 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. 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.
Chinese Currency & Money Exchange
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 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. Over the past week, the closing price fluctuated between 7.12 and 7.13 yuáns. If you ask an economist, however, they will tell you that these terms are actually somewhat different.
Commonly used bank notes and coins in China
In fact, mobile payments have become so common that some merchants no longer keep enough small bills on hand to make change. Chinese paper money comes in denominations of one, five, ten, twenty, fifty and one hundred. The currency of China is referred to as either the Chinese yuan (CNY) or renminbi (RMB). China’s central bank, the People’s Bank of China, is responsible for issuing these bank notes and coins. When you check online or visit banks to see the exchange rate for Chinese RMB, you may also see it written out as ¥ or 元, both of which are symbols or the “dollar signs” for RMB. This includes a detailed explanation of what Chinese currency is called as well as the available bank notes and coins.
There’s a lot to cover here, but I promise you it’s not as intimidating as it sounds. I’ve been exchanging US dollars into China’s yuan for over a decade now and it’s always been a positive experience. 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.
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Because the punishment for distributing fake Chinese yuan is extremely high (in some cases, the death penalty). These strict penalties were established by the Chinese Communist Party to maintain the integrity of the national currency. You may need to get a little cash at the airport kiosk when you land to pay for a taxi, but then you’ll want to pull from an ATM or go to a nearby bank to get the rest of your cash.
The Future of the Digital Yuán
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. As China became one of the world’s preeminent centres of finance and trade in the early 21st century, the renminbi rose as a global currency. In recognition of the renminbi’s elevated status, in November 2015 the International Monetary Fund (IMF) announced that the renminbi was to become one of its reserve currencies. Thus, it would join the U.S. dollar, the euro, the British pound sterling, and the Japanese yen as one of the IMF’s Special Drawing Rights currencies used for intergovernmental loans.
How Much Is 100 Chinese Yuan to Indian Rupees?
- Over the past week, the closing price fluctuated between 7.12 and 7.13 yuáns.
- The China Guide is a Beijing-based travel agency that customizes private tours, educational student tours, and incentive trips across China.
- 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.
- Over that period of time he has traveled by plane, train, car, motorcycle and even camel to explore almost every corner of the country.
If someone insists on you paying the small change, you can just give them one yuan and tell them to keep the change instead. The People’s Bank of China has exclusive authority to issue currency. The reverse side broke millennial book of most coins, which range in denominations from 1 fen to 1 renminbi, contains images of historic buildings and the country’s diverse landscape. 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. After familiarizing yourself with the exchange rate with your home currency, it’s pretty easy to tell how much each note is worth. Where things can get tricky are with the mao/jiao notes and coins.
The midpoint might also be adjusted based on undefined countercyclical factors at times. The renminbi, introduced in 1948, is abbreviated as RMB but it is not an official currency code. Markets located in Hong Kong that trade the Chinese currency at free-floating rates use another unofficial code – CNH. The RMB acts as one of the most-held reserve currencies in the world, while being the eighth most-traded currency globally.
renminbi
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”.
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 modern-day Chinese yuan uses the abbreviation CNY to distinguish between the mainland currency and other uses of the word. Josh is the founder of TravelChinaCheaper.com who has been living in China with his family since 2006. Over that period of time he has traveled by plane, train, car, motorcycle and even camel to explore almost every corner of the country.