Renminbin

Renminbin, more commonly spelled Renminbi, is the official currency of the People’s Republic of China. It is issued by the People’s Bank of China and is legal tender across mainland China. The basic unit is the yuan, with subunits including jiao and fen: 1 yuan equals 10 jiao and 1 jiao equals 10 fen. Banknotes come in denominations such as 1, 2, 5, 10, 20, 50, and 100 yuan, while coins cover smaller values. In practice there are onshore Renminbi (CNY) markets in mainland China and offshore Renminbi (CNH) markets in international financial centers.

The Renminbi was introduced in 1948 to unify wartime currencies and stabilize prices, with the name meaning “people’s currency.” A redenomination in 1955 and subsequent reforms modernized the system. Since the 1990s China has maintained a managed floating exchange rate regime, with a daily reference rate set by the central bank and a controlled band to permit gradual changes while limiting volatility. The government has gradually liberalized some capital accounts and expanded the currency’s role in trade and finance.

International status: The Renminbi has become increasingly integrated into the global financial system. It was added to the IMF’s Special Drawing Rights basket in 2016 and is used in many cross-border transactions and investment activities. The onshore market (CNY) and offshore market (CNH) can move independently to reflect domestic and international demand, contributing to its growing international use in trade and finance.