Chinese Currency - Tips on Using Money in China

The renminbi is the official currency of the People’s Republic of China. The yuan is the basic unit of renminbi; however, it is also referred to as the Chinese currency most of the time, particularly in international contexts where “Chinese yuan” is used to refer to the renminbi. The difference is that renminbi is the name of the currency and yuan refers to its primary unit. One yuan is divided into ten jiao, and a jiao is divided into ten fen. The renminbi is issued by the People’s Bank of China, the country’s financial authority.

What is the Chinese currency called?

Tourists in China are usually confused about how to refer to the Chinese currency. In English, some people call it the “Chinese dollar.” There are three common names and two regular symbols used for currency in China. The official name is renminbi, which translates to “people’s currency” and is abbreviated to RMB. The most widely used international name is yuan, abbreviated to CNY. You can write either CNY 1000 or RMB 1000, both are correct. The official sign representing the Chinese yuan is ¥. However, in most restaurants and stores in China, the symbol is shown as the Chinese character 元 instead, which is pronounced yuan. While travelling in China you may also hear people say “kuai” (pronounced kwai), which is a colloquial word for yuan. The Chinese yuan or RMB is used only in mainland China. Hong Kong’s currency is the Hong Kong dollar, and Macau’s currency is the pataca.

Chinese Banknotes

Chinese banknotes are issued in denominations of 100, 50, 20, 10, 5 and 1 RMB.

Chinese Coins

Coins are issued as 1¥, 0.5¥ and 0.1¥.

What is the difference between RMB and yuan?

There is no real distinction between the RMB and the yuan. The RMB 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; abbreviated as RMB with the symbol ¥). The yuan is the name of the unit in which renminbi transactions are denominated; however, it is also commonly referred to as the Chinese currency. This is the same as pound sterling (the name of the British currency), where the price of a commodity in a London store would simply be stated in pounds.

What does RMB stand for?

RMB is an abbreviation for the official Chinese currency. It stands for Ren Min Bi, which translated to English means “people’s money” or “people’s notes.” Yuan is the base unit of RMB, similar to a dollar in USD.

Which is the best place to buy Chinese yuan?

There are many places to exchange currency in China, ranging from the airport to major hotels, most local banks, and some exchange kiosks and booths spread across cities. It is generally easier to exchange money directly in China than to rely on a traveller’s letter of credit or card, so carry enough cash with you, it can be hard to withdraw US dollars once you arrive. Whatever location you choose to exchange your cash, make sure you do so before heading to rural areas or smaller towns and villages, as you may not find a bank with a foreign-exchange counter outside the major Chinese cities. Be sure you have enough CNY before you leave the city.

Role of the renminbi in the international market

In terms of size and dynamism, the economy of the People’s Republic of China stands out among the world’s rising markets. It has become the world’s second-largest economy and is one of the most important contributors to international growth. These developments have led to intense speculation that the renminbi could become one of the key international currencies.

Exchange rate of the Chinese currency

The Chinese currency is not freely convertible, which means the RMB exchange rate is heavily affected by government policy and is difficult to predict. The Chinese government prefers to avoid huge fluctuations in the renminbi’s exchange rate and intervenes from time to time to prevent this. For those planning to visit China, if you suspect a future rise or fall in the exchange rate between your home currency and the RMB, booking early can be a way to reduce the chance of exchange loss.

Other tips and payment methods

As China rapidly modernises, different payment methods have become accessible to international travellers, including the use of debit or credit cards at local ATMs and various mobile payment methods like Alipay and WeChat Pay that have gained popularity. You can usually withdraw cash from ATMs in major cities and even in some smaller towns. However, check with your bank before you travel to China to confirm the applicable fees and your eligibility to withdraw cash abroad. While it may cost a bit more than withdrawing from a bank directly, the convenience of ATMs makes the transaction worth the additional charge. Understanding the Chinese monetary unit and its divisions can be a little tricky, but you can enjoy your trip carefree if you have made the necessary arrangements for currency exchange. Whether you exchange your currency before travelling or carry it as a traveller’s cheque is up to you, just make sure you have enough to last.