Although they look quite different, the characters 壹圆 (yī yuán) are actually the same as 一元 (yī yuán). 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 word “yuan” is frequently used in Mandarin translations of foreign currencies. The largest banknote is 100 yuan, followed by 50 yuan, 20 yuan, 10 yuan, five yuan, and one yuan. There are 10 jiao in a yuan, like dimes in a dollar, and 10 fen in a jiao.

Money Exchanging

In international trade, the symbol is used to denote the Chinese yuan, and its increasing presence on the global stage underscores China’s growing importance in the world economy. China’s influence is further reflected in the adoption of Chinese symbols for personal names, which has gained popularity among individuals outside China seeking to connect with its rich culture. This trend not only highlights the globalization of Chinese language and symbols but also showcases the country’s soft power through cultural exchange. As economic ties strengthen, understanding and utilizing these symbols may enhance communication and foster deeper relationships in international business dealings. As China’s economic influence expands, the yuan’s status as a reserve currency is gaining traction among investors and governments alike.

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. 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. 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. 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.

The Chinese Renminbi Yuán

Many experts believe that the Renminbi will continue to internationalize, potentially challenging the dominance of the US dollar in global trade and finance. China’s inclusion in the SDR basket is a recognition of its economic significance and integration into the global financial system. The renminbi’s internationalization has led to shifts in global currency dynamics, offering new opportunities and challenges for businesses, investors, and policymakers worldwide. This is evident in various aspects such as trade settlement, foreign exchange reserves, and global investment.

Future Outlook for Renminbi

The most widespread international usage is yuan, which is abbreviated to CNY. With China’s inclusion in the IMF’s Special Drawing Rights (SDR) basket, the global financial implications of the Renminbi’s position are now a topic of significant interest and analysis. As of October 1, 2016, the Renminbi holds a significant position in the IMF’s Special Drawing Rights (SDR) basket, reflecting China’s growing economic influence.

• China’s influence is further reflected in the adoption of Chinese symbols for personal names, which has gained popularity among individuals outside China seeking to connect with its rich culture.
• 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.
• Although it’s still possible to pay with cash in China, mobile payment options enjoy growing popularity.

There are a few reasons for this, including the fact that Chinese banks will not always accept traveler’s checks. Additionally, cash can usually also be exchanged at hotels, though the rates are often unattractive. Of course, there are currency exchange kiosks in major cities that can help you convert money into renminbi as well. 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.

Historical Origins of 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. Basically, the Chinese government doesn’t like to see big fluctuations in the Renminbi’s exchange rate and will intervene from time to time to avoid this. Here you can find the real-time official exchange rate of RMB, which is also the rate that will be used when you exchange RMB while traveling in China.

Imf’s Currency Basket

The renminbi plays a critical role in facilitating international trade and finance, serving as the official currency of the People’s Republic of China. However, the Chinese renminbi is often referred to using different names. 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.

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. The character yuan is used for round or circular things in Mandarin Chinese. This word was also used for the silver Spanish dollars introduced by European merchants in the 17th and 18th centuries. Road Initiative and the establishment of offshore Renminbi centers indicate a concerted push toward a more prominent global role for the currency.

CNY is the official currency abbreviation for the Chinese yuan under the ISO 4217 standard, but RMB is often used as an unofficial abbreviation. However, trade disputes with China continued during Joe Biden’s presidency, with tariffs on electric vehicles, solar cells and semiconductors, and other technology products. Trump returned to office in January 2025 and announced new tariffs on China. The China Guide is a Beijing-based travel agency that customizes private tours, educational student tours, and incentive trips across China. 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!

• Banknotes in circulation come in one-, two-, five-, 10-, 20-, 50-, and 100-yuan denominations, as well as one-, two-, and five-jiao notes.
• 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.
• 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).
• Travelers to China are often confused by how to refer to Chinese money.

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. 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 price of the yuan is permitted to trade within 2% of that price. The midpoint might also be adjusted based on undefined countercyclical factors at times.

Although it’s still possible to pay with cash in China, mobile payment options enjoy growing popularity. If you aren’t quite sure how to use Chinese mobile payment platforms, you’ll be pleased to know that China does still Forex momentum indicator accept cash. However, it is important to recognize that although physical bills are still very much in circulation in China, mobile payment options such as WeChat Pay and Alipay are becoming more and more common. Today, renminbi is the general name for the Chinese currency, while yuan is the name of a unit of that currency. One way to understand this is to imagine a country that uses gold as its currency.

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. The various different names used to refer to the Chinese currency can be confusing for the uninitiated. Some economists believe that these controls keep the yuan artificially devalued, making the country’s exports more attractive.

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. Instead, it is managed through a floating exchange rate, which means it is allowed to float in a narrow margin around a fixed base rate determined with reference to a basket of world currencies.

The Yuan, which is the unit of the RMB, is commonly used to refer to the currency itself, especially in international contexts. The symbol for the Yuan is ¥, which is distinct but similar to the Japanese Yen symbol. The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs.