RMB - what is it? Meaning and Description

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

RMB - what is it? Almost every person who sees this letter designation faces such a question.

RMB. Currency

Due to financial illiteracy in Russia, few people know what these letters stand for. In turn, most people who understand the financial sector are well aware of the meaning of RMB - that this is the letter designation of the Chinese national currency, the monetary unit of the PRC. It stands for "people's money". RMB is a currency included in the list of major world reserve currencies, including the US dollar, euro, British pound, Japanese yen and Swiss franc.

The Chinese yuan also has a standard world symbol, which is represented by the letter CNY.

Description

The yuan has a double division. It consists of ten jiao, which are further divided into ten fen. Chinese money is issued by the People's Bank of China.

In China, paper banknotes are used, the denominations of which were originally one, two and five jiao, as well as one, two, five, ten, fifty and one hundred yuan. To date, only banknotes in denominations from five to one hundred yuan have remained in use.

On the front side of each banknote, a portrait of the great leader of the PRC, Mao Zedong, is depicted. Back to backsides on banknotes of different denominations depict different drawings. The five yuan banknote features Mount Taishan, the ten yuan bill features the Yangtze River, and the twenty yuan bill features the Guilin landscape. The 50 yuan paper note features the Potala Palace, while the 100 yuan note features the People's Convention Center in Beijing.

Exchange transactions. Course

To convert RMB to rubles, you just need to know the current exchange rate of the Chinese yuan. Today it is approximately 8.2 Russian rubles. Before doing this, you need to understand that the exchange rate is constantly changing, because the foreign exchange market is unstable. When you learn this, you can calculate the course, but be prepared for the fact that at any time it can change. So, if you convert RMB to rubles, you get about 0.12.

If you convert RMB to US dollars, you get approximately 6.9 yuan for one US dollar, respectively, one yuan will cost about $0.14. For one euro in 2017, about seven and a half Chinese yuan are given, that is, approximately 0.13 euros for one yuan. One pound sterling is valued at almost 9 yuan, which equals 0.11 pounds to one yuan.

Those who are going to visit China and are unfamiliar with the term RMB, what it is, but have come across it, you can calm down. Thanks to the close trade and economic ties between the Russian Federation and the People's Republic of China and the large flow of Russian tourists to China and vice versa, there are no problems with currency exchange. Both in Russia and China, you can easily exchange rubles for yuan and vice versa in almost any bankor exchange office.

Commission for such operations, as a rule, is charged little or none at all. Russian rubles in China is one of the most common foreign monetary units, along with the US dollar, euro and Japanese yen.

Conclusion

Most often, the Chinese yuan is designated as CNY, but for ease of designation of it as a world reserve currency, it was decided to introduce another letter designation - RMB. That this is more convenient than using the same symbolism became clear almost immediately after its introduction.

Before you go to any country, it is important to learn as much as possible about it. The financial aspect is one of the most important. Despite the fact that the knowledge of the letter designation RMB or CNY cannot be practically useful for a tourist in practice, for general development you need to know all this. In addition, this will allow you to better familiarize yourself with the financial system of China and its national currency.

A serious approach to such a specific issue can be useful, so the financial and monetary structure of the countries you plan to travel to should be given sufficient attention.