Yuan vs Renminbi: Whats the Difference?

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. At present, banknotes in denominations of one, five, 10, 20, 50, and 100 yuan are in circulation. That said, in certain instances, it may be possible to use certain foreign currencies like US dollars. However, the locations that will accept US dollars are typically those that cater to foreign tourists, including large hotels and tourism operators.

Commonly used bank notes and coins in China

One way to understand this is to imagine a country that uses gold as its currency. China has the world’s second largest economy and Chinese money plays an increasingly important role in global financial transactions. That said, there’s still a great deal of confusion when it comes to Chinese currency. The Chinese yuan wasn’t considered an international currency for years because of the Chinese government’s rigid controls. This began to change as the Chinese government began to promote international use of the RMB. The largest banknote is 100 yuan, followed by 50 yuan, 20 yuan, 10 yuan, five yuan, and one yuan.

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. Overall, the digital yuan represents a significant development in the history of Chinese currency. It is expected to play a major role in shaping the country’s financial system and promoting economic growth in the years to come. As China continues to innovate and adapt to the digital age, the digital yuan will likely become an integral part of the Chinese economy and its international trade relations. 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.

Renminbi (RMB)

The word renminbi came into use the same year the People’s Republic of China was founded, in 1949. The word yuan, however, is much older, and was originally used to refer to the silver coins that European merchants used to trade with Chinese merchants almost 500 years ago. Confusingly, however, it’s possible that you may also have heard Chinese money referred to as “yuan” (元 yuán), commonly abbreviated as CNY (“Chinese Yuan”). The RMB is one of the top five most-used currencies in the 2020s, in addition to the U.S. dollar, euro, yen, and British pound. The IMF increased the weight of the yuan in its Special Drawing Rights (SDRs) basket in 2022, an international reserve asset that the IMF created as a supplement to member countries’ official reserves. CNY is the official currency abbreviation for the Chinese yuan under the ISO 4217 standard, but RMB is often used as an unofficial abbreviation.

A Quick Guide to Chinese Currency

After reading this guide, you should now be more confident in your understanding of the Chinese yuan renminbi. Take a careful look at a real 100 RMB note and compare it against the one you believe to be counterfeit renminbi. Regardless, you still want to travel smart and here are some tips on how to avoid fake Chinese currency.

The 1980s marked a turning point as China began to open up its economy to the rest of the world. The yuan started to be used in international trade, although it remained tightly controlled by the PBOC. It wasn’t until 2005 that the Chinese government began to allow the yuan to float on the foreign exchange market, albeit with strict controls. This move was seen as a major step towards liberalizing the Chinese economy and making the yuan a more international currency. As you prepare for your visit to China, this guide will provide a simple introduction to the Chinese renminbi and answer questions related to exchanging money and avoiding fake bank notes. Due to inflation, banknotes or coins with a value of less than one yuan, including one jiao and five jiao, are rarely used in China.

Ready to send money?

• This began to change as the Chinese government began to promote international use of the RMB.
• They can easily manage the situation from there, especially if you received the bills from a black market currency dealer outside a bank.
• It issued the first RMB notes in December 1948, about a year before the Chinese Communist Party defeated the Kuomintang government.
• Officially, the renminbi (RMB) is the official currency of China, which translates as “the People’s Currency”.

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. The character 圆 (yuán) is a variant of 元 (yuán) and the two share the same pronunciation. 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. 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.

Of course, there are currency exchange kiosks in major cities that can help you convert money into renminbi as well. 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.

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. 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.

Yuan (CNY)

The unofficial abbreviation CNH is sometimes used to refer to the offshore price of the Chinese yuan to distinguish between these two prices. The word “yuan” is frequently used in Mandarin translations of foreign currencies. If you’re thinking this may be a potential loop-hole to where you can avoid exchanging for Chinese currency, don’t hold your breath as you need a Chinese bank account to use these apps. Although nowadays most people in China don’t carry much cash with them, everybody is still familiar with the various bank notes available.

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. 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.

• All have in-depth knowledge and experience in various aspects of international banking.
• To help you with this, let’s take a look at how to exchange money into Chinese currency now.
• 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.
• 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.

So, if you are planning any travel to more rural provinces of China, you should make sure that you convert money before departing. 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 trade your way freedom take a look at how to exchange money into Chinese currency now.

Do You Want Our Free Non-Resident Banking Guide?

Then you could say, “This car costs 10 ounces of gold.” In this example, gold is the currency, and ounce is the unit. 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”). 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. 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.

Best Travel Insurance for 2025 Guide & Reviews

On the other hand, if you think your currency will be weaker against RMB in the future, then you can pay us up to 100% of the tour price in advance to lock the exchange rate. If you don’t have any idea about the trend of the RMB’s exchange rate, then you can pay 50% of the tour price at the time of booking, and the rest when your tour gets closer. 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. The currency will be available through various channels, including mobile phones and online platforms, making it accessible to a broader segment of the population. When traveling to China, there are a number of ways that you can exchange foreign money into Chinese currency. That said, it’s important to note that currency exchange will be much easier to facilitate in larger cities.

For the sake of easy carriage, the bank staff will always give you some big notes. 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. 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.