The money in China is officially called the Renminbi (RMB), though it is more commonly referred to as the Yuan (¥).
Understanding Chinese Currency: Renminbi vs. Yuan
While often used interchangeably, "Renminbi" and "Yuan" have distinct meanings, similar to how "Pound Sterling" is the currency name and "pound" is the unit in the UK.
The Renminbi (RMB)
The Renminbi literally translates to "people's currency" and serves as the official currency of the People's Republic of China. It is issued by the People's Bank of China, the country's central bank. The Renminbi acts as the base name for the entire currency system.
The Yuan (¥ or 元)
The Yuan is the basic unit of the Renminbi. For instance, when you speak about the price of an item, you would say it costs "X yuan." The symbol for the Yuan is ¥ (which is also shared with the Japanese Yen) or the Chinese character 元. In international financial markets, the Renminbi is often abbreviated as CNY (Chinese Yuan).
Key Distinctions
Here's a quick overview of the terms:
| Term | Meaning | Symbol/Abbreviation |
|---|---|---|
| Renminbi | Official currency name of China | RMB |
| Yuan | Basic unit of the Renminbi | ¥ or 元, CNY |
Practical Aspects of Chinese Money
When traveling or conducting business in China, you will primarily encounter the Yuan in your daily transactions.
Denominations
The Renminbi comes in various denominations for both banknotes and coins:
- Banknotes: Common denominations include ¥1, ¥5, ¥10, ¥20, ¥50, and ¥100.
- Coins: You'll find coins in denominations of ¥1, 5 jiao (¥0.5), 1 jiao (¥0.1), and sometimes smaller fen (¥0.01) coins, though fen are less commonly used in daily transactions now.
Usage in Daily Life
China has rapidly moved towards a cashless society. While physical cash (Yuan notes and coins) is still accepted, mobile payment apps like Alipay and WeChat Pay are dominant for most transactions, especially in urban areas. Visitors often find it convenient to use these digital payment methods after setting them up.
Understanding the difference between Renminbi and Yuan helps clarify discussions about China's economy and its currency's role on the global stage.
