What Is the Chinese Yuan Renminbi (CNY)?

The term “Chinese yuan renminbi (CNY)” refers to the currency used in the People’s Republic of China. Although it may seem a little confusing because the names are often depicted together, they’re actually 澳洲幸运5官方开奖结果体彩网:two separate terms.

A yuan acts as China’s unit of account for its financial system and economy, which represents a siꦑngle unit of money. Renminbi, on 🌠the other hand, is the official name of the currency itself.

Understanding the Chinese Yuan Renminbi (CNY)

The Chinese yuan renminbi is the official currency of mainland China. As noted above, the term “yuan” refers to a single unit of the currency, while the term “renminbi” refers to the actual name of the currency itself. The yuan is abbreviated as CNY, while the renminbi is abbreviated as RMB. The latter was introduced to the country by the Communist People’s Republic of China at the time of its founding in 1949.

The symbol for the currency is ¥. A single yuan is divided into 10 jiao. One jiao is further divided into 10 fen. 澳洲幸运5官方开奖结果体彩网:Banknotes in 澳洲幸运5官方开奖结果体彩网:circulation come in one-, two-, five-, 10-, 20-, 50-, and 100-yuan 澳洲幸运5官方开奖结果体彩网:denominations, as well as one-, two-, and five-jiao notes. The central bank also mints coins in one, two, and five fen. Coins are also issued in one and five jiao, along with one-yuan denominations.

Several series of the renminbi were issued since the 1950s, each of which has its own banknotes and coins. The fifth series is now 澳洲幸运5官方开奖结果体彩网:legal tender, leading to the prior ones being phased out.

Special Considerations

As mentioned above, the terms “yuan” and “renminbi” are commonly used interchangeably or together in some parts of the world, so it’s no surprise that their use often confuses investors. The term “yuan renminbi,” though, is a lot like the terms “澳洲幸运5官方开奖结果体彩网:pound sterling” and “pound,” which are used to describe the currency of t𓆏he United Kingdom.

The pound sterling is the name of the British currency itself, while pounds are a denomination of the pound sterling. You use pounds to purchase goods and services, not pounds sterling or sterling. Following this example, it’s important to remember that you can refer to the currency in general as the renminbi. But references to monetary value and prices use the term “yuan.” For example, the was ¥339,800 as of March 2019, after the Chinese government announced it would reduce the country’s 澳洲幸运5官方开奖结果体彩网:value-added tax (VAT).

Devaluation

The CNY went th🃏rough a steady stream of appreciation against the greenback, leading the country to devalue its currency several times in 2015. Chinese leaders said this was part of the country’s market reform efforts. This, in turn, opened up a 澳洲幸运5官方开奖结果体彩网:trade war with the United States calling China a 澳洲幸运5官方开奖结果体彩网:currency manipulator and then-President Donald Trump imposing tariffs on Chinese goods starting in 2018. China responded with its own set of ta𝓰riffs on American pro🤡ducts.

The trade war ended with a deal signed in January 2020. 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.

Not only did devaluing the CNY make Chinese goods more affordable and attractive in international markets, but there was also another advantage for China. It became the first 澳洲幸运5官方开奖结果体彩网:emerging market currency included in the 澳洲幸运5官方开奖结果体彩网:Internation♊al Monetary Fund’s (IMF’s) 澳洲幸运5官方开奖结果体彩网:special drawing rights (SDR) basket—a reserve currency used by the IMF. The IMF added the CNY to the basket in October 2016.

The Bottom Line

The Chinese yuan renminbi is the currency used in the People’s Republic of China. Yuan is the actual unit of currency for China’s financial system and economy, representing a single unit of money. Renminbi is the official name of the currency itself.