Last week I asked “Which county uses the Yuan as currency?” If you guessed China then you are right on that Yuan (see what I did there). Although when referring directly to their money it is called Yuan there is a bit of confusion surrounding the term. Let’s learn more about China’s currency and the history of it.
The official currency of China is known as the Renminbi, which translates to “People’s currency”. The Yuan is the base unit of the Renminbi, this confuses economist, and countries around the world, but the best comparison I can give is the Renminbi is similar to the Federal Reserve Note and the Yuan is like the U.S. dollar. So when referring to money you would never call a dollar a Federal Reserve note so all currency is counted in Yuan.
The bank notes come in 1 Yuan, 2 Yuan, 5 Yuan, 10 Yuan, 20 Yuan, 50 Yuan and 100 Yuan. 1 Yuan makes up 10 Jiao (similar to our dime) and 1 Jiao equals 10 Fen (similar to our penny). Yuan in Chinese is used to describe there country’s currencies as well. The U.S. dollar is called the Meiyuan, which translates to “American Yuan” and the Euro is called Ouyuan, which means “European Yuan.”
Historically speaking the Chinese were the first to invent paper money, but kept their currency centered around their bronze coins until December of 1948 when the Renminbi was first issued. Most of the paper money in China has the image of Chairman and Communist leader Mao Zedong, but other famous Communist Chinese leaders can be found on some of their currency.
Today the exchange rate between the U.S. dollar and the Chinese Yuan is 10 Yuan equals 1.54 U.S. dollars.
Would you like to try your hand at conversions and basic understanding of Chinese currency? Then it is time to call Ambassador Travel to start learning how you can travel to China!