![]() ![]() In ancient China, coins of gold, silver, and lead were used. Even then, the copper coin remained a staple in China’s currency offerings. It wasn’t until the 9th century that paper money was introduced into China’s currency. The first emperor of China Qin Shi Huang dismissed the trading currency of the time and replaced it with copper coins. As far back as 210 BC, China was using currency similar to what we use today, rather than simply trading goods with the barter system. History of Chinese CurrencyĬhina is a nation with centuries-old history. In October 2019, China’s central bank, PBOC, announced that a digital renminbi is going to be released after years of preparation. The International Monetary Fund stated that the Chinese currency is no longer undervalued against the dollar given its recent appreciation, however, economists stated that recent devaluations as of 2019 may change that outlook. On October 1st, 2016, the RMB became the first emerging market currency to be included in the IMF‘s special drawing rights basket, the basket of currencies used by the IMF as a reserve currency. In 2012, appreciation actions by the Chinese government, as well as quantitative easing measures taken by the American Federal Reserve and other major central banks, have caused the renminbi to be within as little as 8% of its equilibrium value. This is what enabled China to advance as an industry leader in the global economy, and it is also why Chinese currency moves in the same direction as the U.S. In an effort to boost its own industrialization, the fixed rate allowed them the opportunity to buy machinery from other countries at prices they could afford. The Chinese government did not want the country to depend on the outside world for imports. The fixed rateįrom 1949 until the late 1970s, China placed an overvalued fixed exchange rate on its currency. ![]() As prices rise, some low denomination coins and bills are no longer used. The renminbi is available in denominations from:Ĭoins are available from 1 fen to 1 yuan (¥0.01–1). Popular political figures appear on larger denomination bills, and people in traditional, formal Chinese attire appear on the lower denominations. The banknotes include imagery of some of China’s communist leaders, both past and present, including Mao Zedong. The renminbi currency comes in denominations ranging from 1 fen to 100 renminbi. Instead, they use the word “kuai.” Kuai (Chinese: 块 pinyin: kuài) is usually used when discussing money. However, in everyday Mandarin, people don’t use renminbi or yuan when talking about money. It literally translates into “round object” or “round coin.” One yuan can be further divided into jiao and fen, which is similar to a cent used in the U.S. The word “yuan” comes from the Qing Dynasty era. This is quite similar to the UK’s pound sterling and pound. Renminbi is the name of the currency itself while yuan is the actual unit of currency. The official currency of China is known as the renminbi (RMB), but it is also commonly referred to as the Chinese yuan (CNY). dollars using the applicable exchange rate without prior notice to you.įor additional information related to Wires and foreign currency wires, please see the Wells Fargo Wire Transfers Terms and Conditions.Further Reading Is the Currency Called Renminbi or Yuan? Incoming wire transfers received in a foreign currency for payment into your account will be converted into U.S. ![]() We may refuse to process any request for a foreign exchange transaction. Wells Fargo is your arms-length counterparty on foreign exchange transactions. Foreign exchange markets are dynamic and rates fluctuate over time based on market conditions, liquidity, and risks. ![]() Different customers may receive different rates for transactions that are the same or similar, and the applicable exchange rate may be different for foreign currency cash, drafts, checks, or wire transfers. The exchange rate Wells Fargo provides to you may be different from exchange rates you see elsewhere. The applicable exchange rate does not include, and is separate from, any applicable fees. The markup is designed to compensate us for several considerations including, without limitation, costs incurred, market risks, and our desired return. The exchange rate used when Wells Fargo converts one currency to another is set at our sole discretion, and it includes a markup. In addition to any applicable fees, Wells Fargo makes money when we convert one currency to another currency for you. ![]()
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