If you’re planning a trip to Shanghai or just looking at your brokerage account, you’ve probably scratched your head over what a Chinese dollar is called. It’s a bit of a linguistic mess. You see "RMB" on some sites, "CNY" on others, and everyone keeps talking about "Yuan."
It’s confusing.
Honestly, it’s like asking what American money is called and getting three different answers. Is it the dollar? The buck? Legal tender? In China, the answer depends entirely on whether you’re talking about the currency system itself or the physical bills sitting in a wallet.
The Short Answer: Renminbi vs. Yuan
Let's get the big one out of the way. The official name of the currency is the Renminbi. If you want to sound like a local or a finance pro, that’s the term. It literally translates to "People’s Currency."
But nobody goes into a convenience store in Beijing and asks for five "People’s Currency." That would be weird.
Instead, they use the word Yuan. The Yuan is the unit of account. Think of it like this: British currency is called "Sterling," but the unit you actually spend is the "Pound." Or, in a more relatable sense, "Federal Reserve Notes" is the official name on a US bill, but we call it a "Dollar."
So, when you're asking what a Chinese dollar is called, you're usually looking for the word Yuan.
Why the double name?
The People's Bank of China (PBOC) introduced the Renminbi in 1948, right before the People's Republic of China was established. They needed to unify the economy. Before that, China’s money was a chaotic mix of local currencies, silver, and foreign coins. The Renminbi was the "new deal."
Breaking Down the Units: It’s Not Just One Bill
Most people stop at Yuan, but it gets deeper. If you’re at a street market, you’ll hear words that aren't in your textbook.
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The Yuan is divided into smaller bits, much like the dollar is divided into cents. But China uses a decimal system with an extra step.
- Yuan (元): The primary unit.
- Jiao (角): One-tenth of a Yuan. (Think of this as a "dime").
- Fen (分): One-tenth of a Jiao. (This is your "penny").
Now, here is where it gets very "human." In everyday speech, people rarely say "Yuan" or "Jiao." They use slang. They say Kuai (块) instead of Yuan. It literally means "piece" or "chunk," harking back to when silver was traded in physical pieces. Instead of Jiao, they say Mao (毛), which means "feather" or "hair."
If a vendor tells you a bowl of noodles is "Shi Kuai," they’re asking for 10 Yuan. Simple.
CNY vs. CNH: The Offshore Headache
If you’ve looked at currency exchange apps, you’ve probably seen two different tickers: CNY and CNH. This is where the "Chinese dollar" gets technical and, frankly, a bit annoying for investors.
China keeps a tight grip on its money. Because they want to control the value of the currency to help their exports, they don't let the Renminbi flow freely in and out of the country. This led to a split personality for the currency.
CNY is the Renminbi traded inside mainland China. The PBOC sets a "midpoint" rate every morning, and the currency is only allowed to trade within a 2% band of that rate. It’s heavily regulated.
CNH is the Renminbi traded outside of mainland China—mostly in Hong Kong, Singapore, and London. It’s the "offshore" version. The market determines its value more than the central bank does. Most of the time, CNY and CNH are very close in value, but if there’s a global financial panic, they can drift apart.
Why should you care? If you’re buying Chinese stocks or doing international business, that tiny difference between CNY and CNH can actually cost you a lot of money.
The Rise of the Digital Yuan (e-CNY)
We can't talk about what a Chinese dollar is called without mentioning that it’s increasingly becoming a bunch of code. China is way ahead of the US and Europe in the "Central Bank Digital Currency" (CBDC) race.
It’s called the e-CNY.
It isn't a cryptocurrency like Bitcoin. It’s just a digital version of the physical cash. You don't need an internet connection to use it; you can tap two phones together to transfer money. It’s intended to replace physical cash for daily transactions. While we’re still fumbling with plastic cards or Apple Pay tied to a private bank, the Chinese government is literally issuing the digital "dollars" themselves.
Is the Yuan going to replace the Dollar?
This is the "million-dollar" question. Or the "million-yuan" question.
For decades, the US Dollar has been the king of the world. Most oil is bought in dollars. Most central banks hold dollars. However, China has been pushing hard to make the Renminbi a "reserve currency." In 2016, the International Monetary Fund (IMF) added the Yuan to its basket of elite currencies (the Special Drawing Rights).
But there’s a catch.
Most experts, like those at the Council on Foreign Relations, point out that as long as China has "capital controls"—meaning you can’t easily take your money out of the country—the Yuan won’t beat the Dollar. Investors like freedom. They like knowing they can sell their assets and move their cash whenever they want. China isn’t there yet.
What You’ll Actually See on the Money
If you hold a physical bill, you’ll notice something interesting. The portrait on every single note is the same: Mao Zedong.
Whether it’s a 1 Yuan note or a 100 Yuan note, Mao is there. The colors change, though.
- 100 Yuan: Red (The big one, often called "redbacks").
- 50 Yuan: Green.
- 20 Yuan: Brown/Orange.
- 10 Yuan: Blue.
- 5 Yuan: Purple.
- 1 Yuan: Olive green.
Another cool detail? The bills have "People's Bank of China" written in several languages: Mandarin, Tibetan, Uyghur, Zhuang, and Mongolian. It’s a nod to the fact that China is a massive, multi-ethnic state, even if the currency is unified under one name.
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Practical Tips for Handling Chinese Currency
If you’re heading to China or dealing with a Chinese supplier, keep these three things in mind.
First, forget your wallet. Seriously. China is virtually a cashless society now. Even the smallest street stalls prefer Alipay or WeChat Pay. You link your international credit card to these apps, and you scan QR codes. If you pull out a 100 Yuan bill for a cheap snack, the vendor might not even have change for you.
Second, check for counterfeits. While it’s less common now with digital payments, fake 100 Yuan bills used to be a huge problem. Locals will often rub the collar of Mao’s portrait on the bill; it should feel textured or "rough" to the touch. If it’s smooth, it’s probably a fake.
Third, understand the exchange rate. Historically, the rate has hovered around 6 to 7.5 Yuan per 1 US Dollar. If you see a price in Yuan, a quick mental shortcut is to divide by 7. It won't be perfect, but it prevents heart attacks when you see a "700" price tag on a pair of shoes.
Summary of Terms
To keep it all straight:
- Renminbi (RMB): The official name of the whole currency system.
- Yuan (CNY): The unit of the currency (what you’d call a "dollar").
- Kuai: The slang word for Yuan used in daily life.
- Jiao/Mao: The "dimes" of the system.
- e-CNY: The new digital version.
The world of Chinese finance is moving fast. Ten years ago, everyone used cash. Today, it’s all QR codes and digital tokens. But whether it’s a physical bill or a blip on a screen, it’s all part of the Renminbi.
Next Steps for You
If you are preparing to handle Chinese currency for the first time, your best move isn't going to a bank for physical cash. Download the Alipay app. Since 2023, they have made it significantly easier for foreigners to bind international Visa or Mastercard accounts to the app. This allows you to pay in Yuan at the local "Kuai" rate without carrying a heavy wallet or worrying about whether a shop takes your specific credit card. If you are an investor, keep an eye on the USD/CNH exchange rate on platforms like TradingView to see how the offshore market views China's economic health in real-time.