Chinese currency: from silver to "mulberry" banknotes

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

In Central and East Asia there are many states that can boast of their centuries-old history. One of these countries is China. More than a billion people live on the territory of the modern state. The most populous country in the world has one of the longest histories of its existence. Along with the millennia of the formation of the sovereign system, the monetary units of China have gone through a long process of development.

Liang, iambic and fyn

In the ancient state, silver was highly valued. Until the end of the twentieth century, this metal was not subject to minting on the territory of the modern state. Instead of coins, the use of small ingots was common. They had their own name - liang. At that time, these bars were the national currency of China. One liang weighed just over 31 grams. A silver bar could be exchanged for coins made from copper. They had a square hole right in the center. For one liang they gave about 1200 coins.

The reign of almost every new Chinese emperor was marked by the introduction of a new currency for the empiresystems. So, in the era of the reign of the Qing Dynasty, for one liang they gave ten mao. Those, in turn, could be exchanged for 100 fyn. However, these monetary units of China were not the smallest. In those days, on the territory of the Celestial Empire (the second name of the country), one fen could be “broken” into 10 li.

The ancient monetary system of China provided for the presence of larger means of payment than the liang. They were fairly large silver ingots, the name of which is similar to the literary term - iambic. Each cash nugget weighed about 1.5 kg, which was approximately equal to 50 liang in mass.

Pioneers in the production of paper notes

From a high school history course, many people know that the Celestial Empire is the birthplace of silk and tea. However, not many people know that this country is also the place where paper banknotes appeared for the first time in the world. These monetary units of China were first used in the 2nd century BC. e. The mention of this event contains documents that have come down to us from the era of the reign of Emperor Wu Ti. According to historical manuscripts, paper notes were made from parchment obtained from deerskins. After some time, the masters of the Middle Kingdom created a technology for making paper from the bark of a mulberry tree (mulberry). This achievement made it possible to simplify the process of making paper banknotes.

Introduction of paper money

The prerequisite for the appearance of paper means of payment was the low purchasing power of copper coins, which were minted at that timeimperial mint. In addition, metal rounds with a square hole were heavy. It also had a certain effect on the government's desire to change heavy coins to lighter material.

In order not to carry several kilograms of copper monetary elements, the population of the country began to hand over metal rounds to merchants. In return, they gave people receipts, which were a means of payment. However, at the beginning of the 11th century A. D. e. the government forbade merchants to engage in such activities. In order to facilitate market relations and settlements between the population, the imperial court began to issue receipts. Paper banknotes were a full-fledged replacement for copper coins. Each of the receipts had its own value.

Modern payment system

In 1835, new money began to be issued on the territory of the country. In China, the name of the "fresh" unit sounded like "renminbi". In translation, this hard-to-pronounce word means "people's money." Worldwide, the name of the new unit is known as the yuan. However, this money became a national means of payment relatively recently - in the late 40s of the 20th century. Until now, the Chinese payment system has experienced numerous crises and innovations.

Until the beginning of the 20th century, the silver standard was in circulation in the country. The population in rural areas also used ancient Chinese coins, which were called nannies (keshi). As such, a unified system of payments and settlements was absent in the territorycountry until 1949. At the same time, the population could have Chinese liang and American dollars, Hong Kong banknotes and copper coins in their hands.

Single payment facility

In 1948, the country's government moved away from the use of silver and included a gold exchange standard in its monetary system. It was then that the yuan was recognized as a single national means of payment.

At the moment, the question of how money is called in China can be easily answered - yuan. However, in addition to this means of payment, the National Bank of the country also issues jiao and fen (fen). There are about 22 banknotes in free circulation. Jiao and fyn are issued in denominations of 1, 2 and 5 units. The yuan has the same banknotes. In addition, 10, 50 and 100 renminbi banknotes are issued.