What is the currency of China? 

Let’s be honest: when planning a trip to China, your mind is likely occupied with visions of The Great Wall, steaming bamboo baskets of dumplings, and possibly some impromptu tai chi in the park. But before you get swept up in all that wanderlust, there’s one small but crucial detail you’ll want to sort out: what is the currency of China? 

In this guide, we’ll unravel the yuan vs renminbi riddle, explore how Chinese currency came to be, and share tips on how best to carry and use your money while you're there. Trust us, your bank account (and your sanity) will thank you. 

Currency in China 

Let’s start with the basics. The currency in China is called the yuan, or more officially, the renminbi. These two names often get used interchangeably, which can cause a bit of confusion. Just remember: it’s a bit like how Brits refer to their money as both pounds and sterling. 

The currency code for the Chinese yuan is CNY, and you’ll spot the symbol ¥ on banknotes and price tags. You might also see it abbreviated as RMB, especially in banking and business circles. 

What’s the difference between the yuan and renminbi? 

Great question, and a common one too. Think of it like this: renminbi is the name of the currency, while the yuan is the unit of that currency. It’s the same relationship as sterling and pound in the UK. 

So, you might say, "This costs 100 yuan," but you wouldn’t typically say, "This costs 100 renminbi." It’s all in the semantics, but knowing the lingo makes you look like a savvy traveller instead of a bumbling tourist (we’ve all been there). 

Why does China need two currencies? 

Ah, the intrigue deepens. The reason for this dual naming lies in how China manages its money. The renminbi is used for all domestic transactions within Mainland China. The yuan, on the other hand, is the unit used in international trade and exchange rates. 

In Mandarin, renminbi translates to "people's currency" while yuan means "unit" or sometimes "circle." Pretty poetic, right? Not unlike how Brits might refer to a tenner or a quid, the Chinese have their own delightful terms for money. 

Chinese currency denominations 

When you’re holding Chinese currency in your hand, here’s what you’ll be dealing with: 

Banknotes: 

• ¥1 

• ¥5 

• ¥10 

• ¥20 

• ¥50 

• ¥100 

Coins: 

• 1 jiao 

• 5 jiao 

• ¥1 

Now, don’t be thrown off if you hear the word "kuài" in everyday conversation. It’s a casual term for yuan, much like we use "quid" for pounds or how Americans say "bucks." 

A brief history of currency in China 

China’s monetary history is as rich and diverse as the country itself. From ancient bronze coins to today’s high-tech cashless options, the journey of the currency in China is full of fascinating twists and turns. 

Old forms of currency in China 

Long before the days of contactless payment, China was already a pioneer in coinage. During the Zhou Dynasty (1046–256 BCE), bronze coins were introduced in various shapes, including spade- and knife-like designs. Eventually, the more familiar round coins with square holes became the norm. 

Fast forward to the Tang Dynasty (618–907 CE), and China began experimenting with paper money known as Jiaozi. This innovation really took off during the Song Dynasty (960–1279 CE), thanks to advancements in printing. 

When the Yuan Dynasty (1271–1368 CE) came along, they standardised the use of paper money. European explorers like Marco Polo marvelled at the concept—and brought tales of it back to the West. 

However, during the Ming Dynasty (1368–1644 CE), trust in paper money declined due to rampant inflation. Silver ingots, known as sycee, became the preferred currency. 

By the time the Qing Dynasty rolled around (1644–1912 CE), foreign coins from Europe and other parts of Asia entered circulation due to trade. 

Currency reform 

Things got a bit chaotic in the early 20th century. During the Republic of China era (1912–1949), different regions issued their own currencies, leading to economic instability. Add in foreign influence and the devastating effects of war, and the situation became a bit of a mess. 

The Nationalist government attempted to unify the system with the Chinese Yuan, but rampant inflation (especially in the late 1940s) rendered that effort nearly useless. 

Introduction of the renminbi 

The People's Republic of China, founded in 1949, launched the renminbi to stabilise the economy. The first series of RMB featured 12 denominations and was steeped in imagery promoting the new Communist ideals of the time. 

Chinese currency today 

Reforms in the 1980s under Deng Xiaoping brought the renminbi into the modern era. New designs and security features were introduced, and the currency became more stable and easier to use. 

China has also been pushing for the renminbi to become more prominent in global trade. A major milestone came in 2016, when the RMB was included in the IMF's Special Drawing Rights (SDR) basket, a clear signal of its growing importance on the world stage. 

Should I use cash or card in China? 

Ah, the eternal traveller’s question: to swipe or not to swipe? 

While cash used to be king in China, things have shifted dramatically in recent years. Mobile payments now reign supreme, especially with WeChat Pay and Alipay dominating the landscape. These platforms are wildly popular with locals and accepted almost everywhere, from street food vendors to taxi drivers. 

However, these apps typically require a Chinese bank account or mobile number to fully access, which can be tricky for international travellers. 

Cash, on the other hand, is still very useful, particularly in smaller towns or in places that haven’t caught up with the digital revolution. It’s also your best bet when you first land in China and need to grab a bottle of water or pay for your taxi. 

Credit and debit cards? Less so. They’re mostly accepted in high-end hotels, international chains, and major department stores in big cities like Beijing and Shanghai. Don’t count on using them in more rural areas. 

Your best bet? Bring a decent stash of Chinese yuan in cash and consider exchanging more as needed. 

Where to get Chinese yuan 

You can buy your Chinese yuan online from Travelex and get it delivered straight to your door, so you can focus on planning and packing for your trip to China. You can also choose click & collect to pick it up from one of our stores, on the fly from most major airports before you jet off on your adventure. 

So, to recap: what is the currency of China? It’s the renminbi, and the unit you’ll actually spend is the yuan. Together, they form one of the oldest, most innovative, and increasingly influential currencies in the world. 

Whether you're wandering through a neon-lit night market in Shanghai, climbing the Great Wall, or simply paying for a dumpling or two, understanding the money in your pocket is part of the adventure. 

So sort your travel money early, embrace the currency in China, and dive headfirst into one of the most exciting countries on the planet.