The Yuan and Renminbi are two different currencies that are used in China. The Yuan is the primary currency, while the Renminbi is also used but has a lower value. The two currencies have different values due to various economic and political factors. Understanding the difference between these two currencies can be helpful for those doing business in China or traveling there.
What is Yuan Currency?
Yuan currency is the legal tender in China. The name Yuan comes from the silver dollar, which was used as currency in China during the Qing dynasty. One Yuan is worth 10 Jiao, and one Jiao is worth 10 Fen. Yuan notes come in denominations of 1, 2, 5, 10, 20, 50, and 100. There is also a 1 Yuan coin. The Yuan is sometimes referred to as the Renminbi, or “people’s currency.” The Yuan is pegged to the US dollar, and its value fluctuates with the US dollar. As of July 2017, one Yuan is worth about 0.15 US dollars.
What is Renminbi Currency?
The renminbi currency is the official currency of the People’s Republic of China. The name literally means “people’s currency.” The renminbi is issued by the People’s Bank of China, the central bank of China. Renminbi is subdivided into 10 jiao or 100 fens. The renminbi is also often referred to as the yuan. One yuan equals 10 jiao or 100 fens. The renminbi is legal tender in mainland China, but not in Hong Kong or Macau. The renminbi has been used as a unit of account since the early 20th century and began circulating as a physical currency in 1948. The Renminbi was first pegged to the US dollar in 1955 at a rate of 1:16 and then revalued in 1994 at a rate of 1:10. In 2008, the peg was modified to allow for a more flexible exchange rate against a basket of currencies. Currently, Renminbi is the eighth most traded currency in the world.
Difference between Yuan and Renminbi Currencies
Yuan and Renminbi are two different things. Yuan is the primary unit of account in China. 1 Yuan is divided into 10 jiao or 100 fens. Yuan is often referred to as the “base unit” when discussing money in China. The Yuan is also known as the “Unit of Account Currency.” The Chinese Yuan is sometimes informally referred to as the “Renminbi,” which means “people’s currency.” 1 Yuan is also equal to about 0.16 U.S. dollars. Renminbi, on the other hand, refers to the Chinese currency in general, including both paper money and coins. The term “Renminbi” literally means “the people’s currency.” It is used as the official name for the Chinese Yuan. The renminbi is not a currency itself, but rather a term used to refer to China’s legal tender.
The Yuan is the legal currency of China, while the Renminbi is the unit of account for the yuan. The two are not interchangeable, and it’s important to be aware of which one you’re using when discussing Chinese currency with others. There are also slight differences between the two in terms of their value and how they’re used, so it’s important to understand the nuances if you plan on doing any business in China.