null 6LfQBNMaAAAAAB20bgo7eaKldKSxGDydq-mkb_NC
International Payments

What currency is used in China

travel exchange rates international transfers

China, one of the world's largest countries, is filled with places of outstanding natural beauty and vast cultural heritage. It is thus a global tourism hotspot that sees thousands of visitors every year from all over the world.

Tourists visiting China will need to use the local currency during their stay there. Keep reading if you want to know what currency is used in China. This blog will tell you everything you need to know about China's legal tender, the Chinese Yuan or CNY, officially known as the Renminbi (¥).

History of the Chinese Renminbi

The People's Bank of China first issued Renminbi in 1948. It unified and replaced the different currencies in use earlier, including those used by Japan-controlled banks and the Communists.

China originally fixed the CNY at overvalued exchange rates till late 1970 as the country remained relatively isolated from the global economy. After that, it slowly began to open up, but Renminbi remained tightly controlled.

Transactions with foreigners were initially carried out through Foreign Exchange Certificates (FECs). However, these restrictions slowly lost relevance through the 1990s and 2000s, making CNY international and more conforming to the market.

Today, Renminbi is the ninth most traded currency globally and one of the world's reserve currencies. The International Monetary Fund (IMF) also included it in its Special Drawing Rights Basket in 2016. China has also introduced a digital Renminbi in 2022, which is currently in limited domestic use and undergoing further development.

Note denominations of CNY

Chinese money has two names: the Renminbi (literally, people's currency) and the Chinese Yuan. The official name used in international exchange is Renminbi (RMB), while its units are called Yuan. This is similar to the British system, where the official currency is the Pound Sterling, and its units are called Pounds.

The People's Bank of China issues Renminbi, and the banknotes of its currently ongoing fifth series include denominations of ¥1, ¥2, ¥5, ¥10, ¥20, ¥50 and ¥100. In addition, coins and notes of smaller denominations, Jiao (0.10 Yuan) and Fen (0.10 Jiao) are also in circulation, although their use is rare.

What countries use the Chinese Renminbi?

The Chinese Yuan or Renminbi is the legal tender used for daily transactions in China. Outside mainland China, Hong Kong and Macau sometimes accept the Yuan, including certain banking transactions.

Cambodia officially accepts CNY as currency, while Myanmar and Laos allow transactions in border areas and economic zones. Vietnam unofficially recognizes its conversion locally. CNY also remains in circulation within Indonesia and China’s neighbours like Pakistan, Mongolia, and Thailand.

Where can you buy CNY?

Traditionally, you can buy Renminbi from a bank or a bureau de change. However, buying CNY from such institutions comes with certain disadvantages, including:

Fixed exchange rates

Hidden charges

Lengthy procedures

Physical visits necessary

Therefore, using an online foreign exchange service provider will be far more advantageous. In addition, these providers usually provide quicker exchange services at competitive rates.

However, ensure that the exchange service provider you select when you buy Chinese Yuan is authentic and completely transparent with you regarding your purchase.

Spending money in China

China is a top-rated tourist destination, with the World Bank reporting over 30 million international arrivals in China in 2020. Consequently, there are several tourist facilities in the country's various provinces. For visiting foreign tourists, typical expenses during their stay will be as follows:

Taxi: Taxi fares vary widely between regions. In tier 1 cities like Beijing, fares start from 13 CNY for the first 3 km. However, cab rates can go up to as high as 20 CNY for 3 km in popular tourist destinations.

Meal for two: A full meal for two at a typical Chinese restaurant in China should cost within 20 CNY to 80 CNY.

Hotel room: China has several hotels from budget to luxury range. Charges range from 60 CNY in budget hotels to over 1,500 CNY in luxury options.

Can you use an ATM in China?

There are several ATMs in the country. However, most of them do not accept foreign credit or debit cards. Moreover, China is primarily a digital economy, and digital transactions require a local bank account. Therefore, cash transactions are the most feasible option for foreigners. Therefore, it will be prudent to purchase some Chinese Yuan before your visit.

Summary

Now you know what currency is used in China and how you can buy some before your trip there. You can get the best exchange rates for Renminbi against British Pounds with The Currency Club. Additionally, you get a quick and hassle-free currency delivery service. Moreover, we provide you with live interbank rates and no hidden charges on your transactions, ensuring complete transparency.

travel money

Disclaimer

We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available

the currency club social media

Join the conversation and follow
us on social media

the currency club