RMB currency - Chinese people's money

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

Unlike most countries in the People's Republic of China, the name of the currency and currency are different. The yuan is a measure of the renminbi, often translated as "the people's money". Because of this, there is also a difference in abbreviation: in the international classifier, the Chinese currency is assigned the designation CNY, and the Chinese themselves use the abbreviation RMB from the word "renminbi".

Multifaceted currency

No less confusing is the symbols used for the Chinese yuan. The RMB currency is denoted as Ұ, but the Japanese yen symbolis often used. The Renminbi also has its own hieroglyph 元. All these designations are used in Chinese stores: the abbreviations CNY and RMB, as well as combinations of CN and CN元. All this diversity means one thing - the amount is indicated in yuan, nothing else can be calculated on the territory of the PRC. The exceptions are independent regions: Taiwan, Hong Kong and Macau, where their own currencies are used.

After arriving in China, having already studied seemingly all kinds of names and spellings of local money, touristsoften hear the new "kuai" and "mao". These are colloquial terms replacing the yuan and their jiao tokens. Kuai translates as "piece", such a name change can be compared with American bucks.

Modern coins and banknotes

Chinese yuan is made up of several parts. Even here, the RMB currency stands out: there are 10 jiao in one yuan, and 10 fen in each jiao. Mao and fen are minted in coins of 1 jian, 5 jian, 1 fen, 2 fen, 5 fen. Feni are less and less common every year, often prices are rounded up to jiao. In addition to being used to doing without them, the coins of the smallest part of the yuan are short-lived. Due to the low cost, they were produced from softer metals, as a result, 5 fen could be bent with your fingers.

The 1 yuan coin is quite popular, although it is also printed in paper equivalent. Larger denominations are issued only in the form of banknotes: 5, 10, 20, 50 and 100. Many find it inconvenient that the hundred is the largest bill, since the cash Chinese people's (RMB) currency, the exchange rate of which is very stable, takes up a lot of space when necessary operations with large amounts.

RMB stability

China's currency is considered one of the most reliable in the world, as evidenced by the fact that it has been recognized as a reserve currency since 2012. More and more banks and corporations in all corners of the planet are transferring their assets to Chinese money. Enterprises with international transactions unanimously recognize the benefit of converting to RMB due to its undervalued exchange rate.

Confirmationstability is the stability of the yuan at the level of fluctuations in other world currencies. Until 2005, there was a peg: the Chinese (RMB) currency to the dollar had a constant ratio of 8.28:1. After the government decided to trust the exchange rate to trading, contrary to many opinions, the yuan only rose. Most of all, the state of the renminbi is influenced by the currencies of the European Union, America, Japan and South Korea, the impact of the rest is insignificant.

RMB exchange rate

Because the RMB currency now depends on trading, its exchange rate is minimal, but fluctuates every day. In mid-April 2016, the official exchange rate of the yuan is:

• For 1 US dollar they give 6.48 yuan, or 1 CNY=0.15 USD.
• For 1 euro they give 7.30 Chinese yuan, or 1 CNY=0.14 EUR.
• For 1 pound they give 9.20 yuan, or 1 CNY=0.11 GBP.
• For 1 Japanese yen they give 0.06 yuan, or 1 CNY=16.79 JPY.
• For 1 Russian ruble they give 0.10 yuan, or 1 CNY=10.26 RUB.
• For 1 Ukrainian hryvnia they give 0.26 yuan, or 1 CNY=3.93 UAH.

Where to change currency: exchange rate difference

In Chinese banks, the yuan buying and selling rate differs from the official renminbi rate by literally 1-1.5%. In hotels, the rate will differ by 3-4%, in exchange offices by 2-3%. The worst exchange rate is offered at airports, it can be 5-6% lower than the official one. In terms of benefits, it is definitely worth going to the bank and changing the money brought in it. By the way, it is advised to import dollars or euros, sincesuch an exchange rate as the RMB currency against the ruble is almost never found in China. You will have to go around a dozen banks to find one that accepts rubles, and the set rate will be less. Therefore, it is better to buy American or European currency in advance, and then exchange it for yuan.

The difficulty of exchanging money in banks and exchange offices is that employees speak Chinese. The bank benefits from having a form of currency exchange with translation into English. Do not be afraid of documents, everything you need is copied from the passport (nationality, series and number, last name, first name), plus you will need to indicate the name of the hotel and the amount you want to change.

The process of filling out the form, waiting in line and the exchange itself usually take from 30 minutes to an hour. If you are afraid of filling out forms and not being able to explain yourself at all, change money at the hotel. Yes, the course will be worse, but the staff usually speaks good English, and only a passport is required.

Helpful tips

To avoid the need to change a large amount at the airport, it is enough to have money to travel to a hotel or city, where it will already be possible to change the entire required amount at a more favorable rate. How much to change for transport? From Shanghai airport you can get out by high-speed train, which costs about 50 yuan, or by subway, the ticket price depends on the distance, a maximum of 10 yuan. From Beijing Airport to the city, it is most profitable to take an express train for 25 yuan, a subway ticket will be more expensive. The cost of transport rises at times, so change a bit for the roadmore.

When exchanging money in a bank, along with Chinese money, you will be given a receipt, which is worth keeping. If you have excess RMB currency left, the reverse exchange will be possible only if there is confirmation of the original RMB purchase.