The Chinese Yuan is the country’s official currency, while the Renminbi (RMB) is its unit of account. The two terms are often used interchangeably, but they technically have different meanings. The RMB is a physical currency, while the Yuan refers to the value of that currency relative to other currencies. In other words, one Yuan is equivalent to one U.S. dollar. China has been gradually moving towards a more market-based economy, and as a result, the value of the Yuan has been allowed to fluctuate more freely. This article will explore some of the implications of this change.
What is RMB?
RMB is short for Renminbi, which is the official currency of China. RMB is also sometimes referred to as Chinese Yuan. RMB is issued by the People’s Bank of China, which is the central bank of China. RMB is used in mainland China, and it is also used in Hong Kong, Macau, and Taiwan. RMB is divided into 10 jiao or 100 fen. RMB is not freely convertible, which means that it cannot be bought or sold outside of China. The exchange rate of RMB is also tightly controlled by the Chinese government. RMB is one of the most important currencies in the world, and it plays a major role in the global economy.
What is Yuan?
Yuan is the name of the currency used in China. Yuan is also sometimes referred to as the Renminbi, which means “people’s currency.” One Yuan is worth approximately.15 US dollars. The Yuan is issued by the Central Bank of China and is used throughout the country. Yuan can be exchanged for other currencies, but it is not a widely-accepted currency outside of China. Yuan is typically only accepted in Chinese businesses and by businesses that specifically cater to Chinese tourists. Travelers to China should be sure to have US dollars on hand to exchange for Yuan.
Difference between RMB and Yuan
RMB and Yuan both refer to the currency of China. RMB, or Renminbi, means “people’s currency.” Yuan is the unit of RMB. In other words, RMB is the name of the currency, and yuan is the name of the unit.
- Both RMB and yuan are used in China, and RMB is used in Taiwan. When RMB was first introduced in 1949, it had a different value than it does now. In 1955, the government changed the value of RMB to be equal to 1/10 ounce of gold.
- This put China’s currency on the gold standard. However, in 1971, the United States stopped using the gold standard, and China followed suit. The value of RMB is now set by the government.
- As of 2016, one US dollar is equal to about 6.7 RMB. RMB is not freely convertible into other currencies, but yuan is fully convertible into foreign currencies.
Conclusion
The yuan is the official currency of China, while the renminbi (RMB) is the primary unit of account in China. The two terms are often used interchangeably, but they have different meanings. The RMB is a physical currency, while yuan can also refer to the currency’s value. When you’re traveling in China, it’s important to know the difference between RMB and yuan so that you can make sure you’re getting the best exchange rate for your money.
