Renminbi is the official currency of China. In a simplified version in Chinese, the name sounds like "people's currency." What cny is that currency? This is the yuan, which is the main unit of the renminbi. In this article, readers will get acquainted with the official currency of the PRC.
History of the renminbi. General information
The official monetary unit of the People's Republic of Yuan was first minted in 1835. At that time they were made in the form of silver coins. One Chinese yuan includes ten jiao, which, in turn, is divided into ten fans. Therefore, for example, the sum of one yuan, two jiao and five fenyi will look like 1.25 cny. What is the currency of Chinese Yuan?
It should be noted that the abbreviation cny is used as the designation of the currency in the international currency classification. In addition, this currency is often denoted by the abbreviation RMB. The monetary unit also has the names "Chinese Yuan" and "Pinyin". The right to issue the Chinese national currency belongs to the People's Bank of China.
Denominations of RMB
The main financial institution of the PRC issues paper notes in denominations of one, five, ten, twenty, fifty and one hundred yuan. In addition, coins in denominations of one, two and five fans, one and five jiao, as well as one yuan are also involved in the circulation.
RMB trade
What is cny today? What is the yuan currency and what is its place in the global financial system? For a long time, the Chinese yuan currency rate was pegged to the US dollar. But in 2005, the central bank of China allowed the national currency to detach from the US dollar. To date, the renminbi rate may vary slightly relative to a fixed base price.
It should be noted that the state monetary policy has a great influence on the Chinese currency. This approach does not allow the yuan to obtain the status of a fully liquid currency. Nevertheless, the Chinese leadership is seriously determined to achieve the transformation of the Chinese yuan into a full-fledged world reserve currency.
Those wishing to visit China, it is advisable to take care of the acquisition of local currency in advance. In addition, yuan can be bought at the entrance to the country, for example at the airport. It’s not recommended to buy hand currency on the street. It will be the way to say that when leaving China, you can exchange the remaining yuan for the necessary banknotes. And subject to the preservation of trade checks - to return to itself and VAT. CNY to rubles can be converted in a ratio of about 1: 8.