These reforms aim to enhance the stability and internationalization of the renminbi, ensuring its continued relevance in the global economy. Reforms include liberalizing interest rates, improving regulatory frameworks, and promoting transparency in financial markets. These measures are designed to create a more robust and resilient financial system capable of supporting China’s economic ambitions and mitigating potential risks. Currency has also been a part of Chinese art, with historical coins and banknotes featured in various artistic expressions.

Technically, though, RMB is the name of the Chinese currency (like US Dollar), while CNY is a unit of that currency (like “bucks” or “dollars”). Read on to discover the different between Chinese renminbi (RMB) and yuan (CNY) and learn to talk about China’s currency in both English and Chinese. 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. The Chinese yuan lost value during the COVID-19 pandemic, largely due to reduced economic activity and strict lockdowns.

Yuan (CNY)

• The Chinese government used the new currency to reinforce macroeconomic control and stabilize the economy post-1949 financial instability.
• Of course, there are currency exchange kiosks in major cities that can help you convert money into renminbi as well.
• The midpoint might also be adjusted based on undefined countercyclical factors at times.
• These include holograms, microprinting, textured printing, and ultraviolet (UV) light features.
• 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.

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.

Currency Control Measures in China’s Economy

Exchanging money for renminb if actually requires quite a bit of strategy if you want to get the most bang for your buck. 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. If you are traveling to China for the first time, you might be wondering whether or not to bring any cash. If you plan to stay in China for an extended period of time, setting up a WeChat Pay or Alipay account will definitely make your life much easier. 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.

What is the Chinese currency called?

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. 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 midpoint might also be adjusted based on undefined countercyclical factors at times.

In addition, although you will see the word “yuan” written in Chinese pinyin, you won’t see the character for yuan (元) anywhere. 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. Then you could say, “This car costs 10 ounces of gold.” In this example, gold is the currency, and ounce is the unit.

Following the fall of the Qing Dynasty in 1912, the Republic of China was established, and the country saw substantial monetary reforms. The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies. For the sake of easy carriage, the bank staff will always give you some big notes. 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.

Digital Yuan Security

• China’s central bank, the People’s Bank of China, is responsible for issuing these bank notes and coins.
• The currency allowed the new administration to unify the Chinese economy, which was then divided among several regional currencies.
• Markets located in Hong Kong that trade the Chinese currency at free-floating rates use another unofficial code – CNH.
• Other elements, such as images of the Great Wall, the Temple of Heaven, and various ethnic groups, highlight China’s rich cultural heritage and diverse society.

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. The digital Yuan offers several benefits, including increased transaction speed, reduced costs, and enhanced security. It also gives the government better control over the money supply and the ability to combat money laundering and tax evasion.

The unofficial abbreviation CNH is sometimes used to refer to the offshore price of the Chinese yuan to distinguish between these two prices. Both the Qing dynasty and early Republican government circulated silver yuan white coat investor coins and banknotes. 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. The digital yuan is also expected to promote financial inclusion in China by providing access to financial services for people who do not have traditional bank accounts.

This reflects the cultural importance of currency in China’s history and society. Ancient Chinese coins, with their distinctive square holes, have been used in jewelry and decorative arts, symbolizing wealth and prosperity. Modern banknotes and coins are sometimes incorporated into contemporary artworks, reflecting the ongoing evolution of Chinese society and its economic achievements. In 2016, the International Monetary Fund (IMF) included the yuan in its Special Drawing Rights (SDR) basket alongside the US dollar, euro, Japanese yen, and British pound. This inclusion marked a significant milestone in the yuan’s internationalization and recognized its importance in the global financial system. Including the yuan in the SDR basket has increased its attractiveness to central banks and financial institutions worldwide, leading to higher foreign exchange reserves held in yuan.

How do people in China refer to their money?

The value of the RMB was tightly controlled during the period of the command economy. The PBOC allowed the yuan to trade on international markets as the Chinese economy began opening to the world market, but the floating exchange rate was still tightly controlled. 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. 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.

So, if you happen to hold any rial and are looking to exchange into Chinese currency, it might be difficult to facilitate. 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. The word renminbi came into use the same year the People’s Republic of China was founded, in 1949.

Accommodating your present and the future requirements. Choose an instrument to explore market depth.

This began to change as the Chinese government began to promote international use of the RMB. The digital yuan is being developed by the People’s Bank of China (PBOC), in collaboration with several Chinese banks and technology companies. The currency is expected to be launched in the near future and is seen as a major step towards creating a more modern and efficient financial system in China. Chinese currency features inscriptions in simplified Chinese characters, reflecting the country’s official language. These inscriptions include the denomination, the issuing authority, and other relevant information.

This approach helps mitigate excessive volatility and ensures the yuan’s value aligns with China’s economic conditions. You may have heard that WeChat added the ability to link a foreign credit card in 2018 but then in 2019 they revoked the right for that card to open a WeChat Wallet. It is now mandatory that a user have a valid Chinese bank account before mobile payments can be used. After familiarizing yourself with the exchange rate with your home currency, it’s pretty easy to tell how much each note is worth. China continues to implement legal and financial reforms to strengthen its currency system.

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.

Additionally, the digital Yuan leverages blockchain technology to enhance transparency and traceability, making it more difficult for illicit activities to go undetected. This robust security framework fosters user confidence and promotes widespread adoption. China has incorporated several anti-counterfeiting features to ensure its currency’s authenticity. These include holograms, microprinting, textured printing, and ultraviolet (UV) light features.