If you’ve ever stared at a currency exchange board or a news ticker and felt a sudden wave of confusion about whether you should be looking for "CNY" or "RMB," you aren't alone. It's a mess. Honestly, most people just want a straight answer to the question: what is the China money called? The short answer is the Renminbi. But then everyone calls it the Yuan.
Confused? Think of it like British currency. In the UK, the official currency is "sterling," but the individual unit you spend is a "pound." China works the same way. Renminbi (RMB) is the name of the currency system itself, while the Yuan (CNY) is the actual unit of account. You wouldn't walk into a shop in Beijing and ask how many "Renminbis" a coffee costs; you’d ask how many Yuan.
It’s a linguistic quirk that has massive implications for global trade, especially now that China is pushing its digital currency, the e-CNY, into the mainstream.
Why does China have two names for its money?
It’s basically down to history and linguistics. The term "Renminbi" literally translates to "People’s Currency." It was introduced by the People's Bank of China in 1948, just before the founding of the People’s Republic. It was a move to unify the economy under one banner.
The Yuan, however, is a much older term. Historically, it refers to a round object or a silver coin. If you’re looking at your bank account or a stock market app, you’ll see CNY. That’s the international ISO code for the Chinese Yuan.
The offshore vs. onshore headache
Here is where it gets actually complicated. If you are doing business in mainland China, you are dealing with CNY. This is the onshore rate, and it is strictly controlled by the People's Bank of China (PBOC). They don't just let the market decide what it's worth; they set a "midpoint" every day and let it fluctuate within a small 2% band.
But if you are in Hong Kong, London, or New York, you might hear people talking about CNH. This is the offshore Renminbi.
Why does this exist? Because China wanted to globalize its currency without losing control of its domestic economy. CNH is traded freely on international markets. Usually, the CNY and CNH rates are pretty close, but they can diverge during times of political or economic stress. It's a dual-track system that makes life a nightmare for corporate treasurers but is a fascinating experiment in monetary policy.
What the money actually looks like
If you hold a banknote in your hand, you’re going to see Mao Zedong. A lot. Since the 1999 series, his face has been on every denomination of the paper notes.
The bills come in denominations of 1, 5, 10, 20, 50, and 100. There are also smaller units called Jiao and Fen.
- Ten Jiao make one Yuan.
- Ten Fen make one Jiao.
Fen are basically extinct in major cities like Shanghai or Shenzhen because they're worth so little now. You might find a 1-Jiao or 5-Jiao coin in your pocket, but even those are becoming rare. Why? Because China has basically skipped credit cards and gone straight to a cashless society.
Honestly, if you travel to China today with a wallet full of crisp 100-Yuan bills, you’ll find that some vendors actually struggle to give you change. They expect you to scan a QR code with WeChat Pay or Alipay. It's the norm. Even the street food vendors selling jianbing for 8 Yuan prefer a digital transfer over physical cash.
The rise of the e-CNY
We can't talk about what is the China money called without mentioning the digital version. The e-CNY is China's Central Bank Digital Currency (CBDC). This isn't Bitcoin. It’s not decentralized. It is the digital version of the physical Yuan, issued and backed by the central bank.
China is way ahead of the US and Europe in this department. They’ve been trialing it in major cities for years. The goal is to reduce reliance on private platforms like Alipay and to give the government better visibility into how money moves through the economy. It’s a tool for efficiency, but also, let's be real, a tool for surveillance.
How to get the best exchange rate
If you're heading to China, don't change your money at the airport. That’s a universal rule for any country, but it’s especially true here. The spreads are massive.
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Most people find that using an ATM in China—provided your bank doesn't charge insane international fees—is the most reliable way to get Yuan. Look for major banks like ICBC (Industrial and Commercial Bank of China) or Bank of China. They usually accept international Visa and Mastercard.
But wait. There's a catch.
Because of China’s "Great Firewall" and financial regulations, your international card might not work at small shops. You absolutely need to set up an international version of Alipay or WeChat Pay before you arrive. You can now link your foreign credit card to these apps, which has been a lifesaver for tourists who used to be locked out of the Chinese economy.
The global status of the Renminbi
For decades, the US Dollar has been the king of the world. It’s the "reserve currency." When countries buy oil or settle debts, they usually do it in dollars. China wants to change that.
The International Monetary Fund (IMF) added the Renminbi to its "Special Drawing Rights" (SDR) basket back in 2016. That was a huge deal. It basically meant the Yuan was officially recognized as a top-tier global currency alongside the Dollar, Euro, Yen, and British Pound.
However, the Yuan still represents a small fraction of global payments compared to the Dollar. The main reason is that the Yuan isn't "fully convertible." Because the Chinese government keeps such a tight grip on money entering and leaving the country, many international investors are wary. They want to know they can get their money out as easily as they put it in. Until China opens up its capital account, the Dollar isn't going anywhere.
Common misconceptions about Chinese money
A lot of people think "Hong Kong money" is the same as "China money." It isn't.
Hong Kong uses the Hong Kong Dollar (HKD), which is pegged to the US Dollar. Macau uses the Pataca (MOP). While you can sometimes use Yuan in Hong Kong, the exchange rate offered by shops will usually be terrible. If you’re traveling between the mainland and Hong Kong, you are dealing with two completely different financial systems.
Another weird one: "Kuai."
If you spend any time in China, you’ll hear people saying "Shí kuài" instead of "Shí yuán." Kuai is the colloquial word for money, similar to how Americans say "bucks" or Brits say "quid." It literally means "piece." It’s the most common way to talk about money in daily life. If a vendor tells you something is "wu kuai," they mean five Yuan.
Practical steps for dealing with Chinese currency
If you are planning to do business with a Chinese supplier or visit the country, here is the move.
First, clarify if the quote you received is in CNY or USD. Many exporters will quote in US Dollars to keep things simple for international buyers. If they quote in RMB, check if they mean the onshore or offshore rate.
Second, download the Alipay app. Seriously. Even if you don't think you'll need it, you will. You can now use the "TourPass" or link a foreign card to pay for everything from high-speed train tickets to a bottle of water at a 7-Eleven. It saves you from carrying around stacks of paper money that make you look like a target for pickpockets (though violent crime is extremely low in Chinese cities).
Third, keep an eye on the exchange rate via a reliable source like XE or OANDA. Because the PBOC manages the rate, it doesn't always move the way you'd expect based on market news. It is heavily influenced by trade tensions and domestic policy goals.
Understanding what is the China money called is the first step in navigating one of the most complex economies on earth. Whether you call it Renminbi, Yuan, RMB, or CNY, the reality is that this currency is only going to become more important in the coming years.
What to do next
- Check your bank's foreign transaction fees. If you're going to use an ATM or link your card to Alipay, you don't want to be surprised by a 3% fee on every single purchase.
- Set up digital payments early. Don't wait until you're standing in a busy Beijing subway station to try and verify your passport on a payment app. It can take a day or two for the verification to process.
- Learn the denominations. Even though China is going cashless, having a few 20 and 50 Yuan notes for emergencies is smart. Just make sure they aren't counterfeit; check for the watermark and the "texture" on Mao's jacket, which should feel slightly rough to the touch.