China does not use the dollar as its official currency. Instead, its currency is the Renminbi (RMB), with the primary unit being the Yuan (CNY). However, some people mistakenly refer to the Yuan as the “China dollar.”
Features of the Chinese Yuan (CNY):
- Currency & Symbol:
- Official name: Renminbi (RMB) (meaning “People’s Currency”)
- Primary unit: Yuan (¥ or CNY)
- Subunits: 1 Yuan = 10 Jiao = 100 Fen
- Banknotes & Coins:
- Banknotes: ¥1, ¥5, ¥10, ¥20, ¥50, ¥100
- Coins: 1 Jiao, 5 Jiao, 1 Yuan
- Controlled by the People’s Bank of China (PBOC):
- The Chinese government regulates the exchange rate, using a managed floating system rather than a fully free-floating currency.
- International Role:
- The Yuan is increasingly used in global trade and is part of the IMF’s Special Drawing Rights (SDR) basket.
- China is promoting the digital Yuan (e-CNY) as part of its financial innovation.
The Chinese Yuan is one of the world’s most influential currencies due to China’s massive economy and global trade dominance.
