RMBs

RMBs refers to Renminbi, the official currency of the People’s Republic of China. The currency unit is the yuan (ISO code CNY, symbol ¥). It is issued by the People’s Bank of China (PBOC). The Renminbi is subdivided into 10 jiao, and 1 jiao into 10 fen; in practice, fen coins are rarely used. Banknotes and coins in common circulation include denominations of 1, 5, 10, 20, 50 and 100 yuan, with smaller jiao denominations circulating mainly as coins.

Onshore and offshore markets: The Renminbi is traded in onshore markets (CNY) and in offshore markets (CNH), notably in Hong Kong. China maintains a managed float exchange-rate regime, with a daily reference rate set by the PBOC and actual rates determined by market forces within policy guidelines. Capital controls remain in place to regulate cross-border flows. The CNH market can diverge from the CNY rate due to liquidity conditions and policy.

International use: The RMB has widened its role beyond China in trade settlement, investment, and reserves. It joined the IMF’s Special Drawing Rights basket in 2016 and has grown in prominence as a global payments currency. While not yet as widely held as the leading reserve currencies, it is increasingly used in cross-border transactions and is supported by international market infrastructure and offshore centers. China promotes RMB internationalization through initiatives such as the Cross-Border Interbank Payment System (CIPS) and various offshore markets, alongside broader economic integration.

Digital currency: In recent years, China has piloted a central bank digital currency, the digital yuan or e-CNY. This CBDC aims to complement cash and digital payments, offering a regulated, cash-like digital form issued by the PBOC and tested in select cities and programs.