Chinese currency and its meaning for China

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

China today is one of the most powerful and powerful states in the modern world. The constant growth of its economic indicators, the standard of living of the population and the military-industrial complex for the PRC is no longer a goal that needs to be achieved, but part of the reality to which the population of the country has become accustomed to for many decades of progress. The Chinese currency, with this dynamic development of the entire state, to this day plays a crucial role, since it, first of all, organizes the economic system within the country, without which the onset of chaos and lack of control for the state of any system will be obvious. The Chinese currency is an integral part of the country's success, which the PRC has achieved over the years with hard work. Its competent and accurate correlation with the currencies of other states, purchasing power in the domestic market and a stable unshakable exchange rate, in combination with other sectors of the Chinese economy and the industriousness of its population, have made it possible to achieve such enviable success. Their result today is the significant weight of the PRC in the world political arena, a powerful army,achievements in science and the dynamically growing standard of living of ordinary citizens.

The nuances of the monetary system

Today, the Chinese currency is proudly called the yuan, which literally means "belonging to money", and not the monetary unit of the Middle Kingdom itself, as is commonly believed in the rest of the world. That is, the American dollar in China is also the yuan, but with the prefix meo, which, in turn, identifies the currency as belonging to the United States by the national name. In the same way, the Chinese call other currencies, combining the prefixes of the sound of the currency of a foreign state in Chinese with the domestic yuan. It is customary to call the native monetary unit in China the yuan renminbi, which literally means “people's money”. The Chinese currency yuan is indicated on the international currency market similarly to the Japanese yen, but with an added horizontal line, which, in turn, will allow an attentive person to find the difference in monetary units. Also in the foreign exchange market, the yuan has the bank code CNY and the cipher of the International Organization for Standardization ISO 4217.

Denomination and exchange rate of the Chinese currency

The renminbi is divided into smaller monetary units of 10 jiao and 100 fen. The system for splitting the yuan into money of lesser purchasing power is quite peculiar and a little confusing, but quite intuitive and easy to understand after a brief explanation. In this system, the main thing is to keep the sequence in which 1 yuandivided by 10 jiao, and 1 jiao by 10 fen. That is, 4.23 CNY is 4 yuan 2 jiao and 3 fen. In this way the Chinese restrict themselves in trade from mentioning long decimal phrases referring to people's money with less purchasing power, calling them simply separate short nouns. At the same time, the Chinese currency, although stable, does not have a sufficiently high exchange rate to often use units of purchasing power equal to a hundredth of the yuan. However, fen is still relevant in the distant Chinese provinces. Today, 1 CNY can be exchanged for 5 Russian rubles and 25 kopecks.