View source for Finance:Renminbi

{{Short description|Official currency of the People's Republic of China}}
{{Infobox currency
| local_name_lang = zh-cn
| local_name = 人民币|
| image_1 = Renminbi banknotes.JPG
| image_title_1 = Renminbi banknotes
| name_abbr = RMB
| iso_code = CNY
| unit = ''yuán'' ({{lang|zh|元}} / {{lang|zh|圆}})
| symbol = [[Finance:Yen and yuan sign|¥]] <!-- symbol for the currency. 元 / 圆  are the words in Chinese for "yuan". -->
| frequently_used_banknotes = ¥1&nbsp;RMB, ¥5&nbsp;RMB, ¥10&nbsp;RMB, ¥20&nbsp;RMB, ¥50&nbsp;RMB, ¥100&nbsp;RMB
| frequently_used_coins = ¥0.1&nbsp;RMB, ¥0.5&nbsp;RMB, ¥1&nbsp;RMB
| rarely_used_coins = ¥0.01&nbsp;RMB, ¥0.02&nbsp;RMB, ¥0.05&nbsp;RMB
| subunit_ratio_1 = {{frac|10}}
| subunit_ratio_2 = {{frac|100}}
| subunit_name_1 = ''jiǎo'' ({{lang|zh|角}})
| subunit_name_2 = ''fēn'' ({{lang|zh|分}})
| no_plural = Y
| nickname = ''kuài'' ({{lang|zh|块}})
| nickname_subunit_1 = ''máo'' ({{lang|zh|毛}})
| date_of_introduction = {{start date and age|df=y|1948}}
| replaced_currency = Nationalist-issued yuan
| using_countries = China (Mainland China)<br />Wa State
| issuing_authority = [[Company:People's Bank of China|People's Bank of China]]
| issuing_authority_website = {{URL|http://www.pbc.gov.cn/}}
| printer = China Banknote Printing and Minting Corporation
| printer_website = {{URL|http://www.cbpm.cn/}}
| mint = China Banknote Printing and Minting Corporation
| mint_website = {{URL|http://www.cbpm.cn/}}
| inflation_rate = 2.5% {{small|(2017)}}
| pegged_with = Partially, to a basket of trade-weighted international currencies
| inflation_source_date = <ref>{{Cite web|url=http://www.xe.com/currency/cny-chinese-yuan-renminbi|title=CNY – Chinese Yuan Renminbi rates, news, and tools &#124; Xe|access-date=23 July 2016|archive-date=16 July 2016|archive-url=https://web.archive.org/web/20160716020240/http://www.xe.com/currency/cny-chinese-yuan-renminbi|url-status=live}}</ref>
<ref>{{Cite web |url=https://www.bbc.com/news/world-asia-37996473.amp |title=Myanmar's free-wheeling Wa state |date=17 November 2016 |access-date=31 October 2022 |archive-date=1 November 2022 |archive-url=https://web.archive.org/web/20221101192032/https://www.bbc.com/news/world-asia-37996473.amp |url-status=live }}</ref>
| inflation_method = [[Finance:Consumer price index|CPI]]
}}
{{Infobox Chinese
| title = ''Renminbi'' <!-- NB this is correct. Renminbi is the CURRENCY, the Yuan is just its primary unit. -->
| pic = Renminbi (Chinese characters).svg
| piccap = "''Renminbi''" in Simplified (top) and Traditional (bottom) Chinese characters
| picupright = 0.55
| s = 人民币
| t = 人民幣
| l = "People's Currency"
| p = Rénmínbì
| bpmf = ㄖㄣˊ ㄇㄧㄣˊ ㄅㄧˋ
| w = Jên<sup>2</sup>-min<sup>2</sup>-pi<sup>4</sup>
| mi = {{IPAc-cmn|AUD|Zh-rénmínbì.ogg|r|en|2|.|m|in|2|.|b|i|4}}
| y = Yànmànbaih
| ci = {{IPAc-yue|j|an|4|.|m|an|4|.|b|ai|6}}
| j = Jan4man4bai6
| h = Ngìn-mìn-pi
| poj = Jîn-bîn-pè
| altname = Yuan
| s2 = 圆 (or 元)
| t2 = 圓 (or 元)
| l2 = "circle" (ie. a [[Finance:Coin|coin]])
| p2 = Yuán
| w2 = Yüan<sup>2</sup>
| mi2 = {{IPAc-cmn|yuan|2}}
| bpmf2 = ㄩㄢˊ
| y2 = Yùhn
| ci2 = {{IPAc-yue|j|yun|4}}
| j2 = Jyun4
| h2 = Ngiàn
| poj2 = Goân
| order = st
}}

The '''renminbi''' ({{zh|c=人民币|p=Rénmínbì|l=People's Currency}}; [[Finance:Currency symbol|symbol]]: '''¥'''; [[ISO 4217|ISO code]]: '''CNY'''; abbreviation: '''RMB''') is the official [[Finance:Currency|currency]] of the {{wipe|China}}.{{NoteTag|Excluding special administrative regions Hong Kong and Macau.}} It is the world's 5th most traded currency as of April 2022.<ref name=BIS>{{cite web|title=Triennial Central Bank Survey Foreign exchange turnover in April 2022|url=https://www.bis.org/statistics/rpfx22_fx.pdf|publisher=Bank for International Settlements|access-date=31 October 2022|page=5|date=27 October 2022|archive-date=27 October 2022|archive-url=https://web.archive.org/web/20221027140118/https://www.bis.org/statistics/rpfx22_fx.pdf|url-status=live}}</ref>

The yuan ({{zh|s=元}} or {{zh|s=圆|t=圓|p=yuán}}) is the basic unit of the renminbi, but the word is also used to refer to the Chinese currency generally, especially in international contexts. One yuan is divided into 10 jiao ({{zh|s=角|p=jiǎo}}), and the jiao is further subdivided into 10 fen ({{zh|s=分|p=fēn}}). The renminbi is issued by the [[Company:People's Bank of China|People's Bank of China]], the [[Finance:Central bank|monetary authority]] of China.<ref>Article 2, {{cite web|date=27 December 2003|url=http://www.cin.gov.cn/law/main/2004010802.htm|title=The People's Bank of China Law of the People's Republic of China|url-status=dead|archive-url=https://web.archive.org/web/20070320211302/http://www.cin.gov.cn/law/main/2004010802.htm|archive-date=20 March 2007}}</ref>

==Valuation==
Until 2005, the value of the renminbi was [[Finance:Fixed exchange-rate system|pegged]] to the {{wipe|United States dollar}}. As China pursued its transition from [[Social:Planned economy|central planning]] to a [[Finance:Market economy|market economy]] and increased its participation in foreign trade, the renminbi was [[Finance:Devaluation|devalued]] to increase the [[Finance:Competition (companies)|competitiveness]] of Chinese industry. It has previously been claimed that the renminbi's official [[Finance:Exchange rate|exchange rate]] was undervalued by as much as 37.5% against its [[Finance:Purchasing power parity|purchasing power parity]].<ref name="Lipman 2011">{{cite journal|last=Lipman|first=Joshua Klein|title=Law of Yuan Price: Estimating Equilibrium of the Renminbi|journal=Michigan Journal of Business|date=April 2011|volume=4|issue=2|url=http://michiganjb.org/issues/42/text42b.pdf|access-date=23 May 2011|archive-url=https://web.archive.org/web/20110727082626/http://michiganjb.org/issues/42/text42b.pdf|archive-date=27 July 2011|url-status=dead}}</ref> However, more recently, [[Finance:Currency appreciation and depreciation|appreciation]] actions by the Chinese government, as well as [[Finance:Quantitative easing|quantitative easing]] measures taken by the American [[Finance:Federal Reserve|Federal Reserve]] and other major [[Finance:Central bank|central bank]]s, have caused the renminbi to be within as little as 8% of its [[Finance:Economic equilibrium|equilibrium value]] by the second half of 2012.<ref>{{cite news | url=https://www.washingtonpost.com/business/economy/chinas-currency-rises-against-the-dollar/2012/09/28/790415be-099e-11e2-a10c-fa5a255a9258_story.html | newspaper=The Washington Post | first=Howard | last=Schneider | title=Some experts say China's currency policy is not a danger to the U.S. economy | date=29 September 2012 | access-date=10 September 2017 | archive-date=17 May 2021 | archive-url=https://web.archive.org/web/20210517173528/https://www.washingtonpost.com/business/economy/chinas-currency-rises-against-the-dollar/2012/09/28/790415be-099e-11e2-a10c-fa5a255a9258_story.html | url-status=live }}</ref> Since 2006, the renminbi exchange rate has been allowed to [[Finance:Floating exchange rate|float]] in a narrow margin around a fixed base rate determined with reference to a [[Finance:Currency basket|basket of world currencies]]. The Chinese government has announced that it will gradually increase the flexibility of the exchange rate. As a result of the rapid [[Finance:Internationalization of the renminbi|internationalization of the renminbi]], it became the world's 8th most traded currency in 2013,<ref name="swift2013">{{cite web|title=RMB now 8th most traded currency in the world|url=http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2013%2FPR_RMB_september.xml|publisher=[[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]]|date=8 October 2013|access-date=10 October 2013|archive-date=5 November 2015|archive-url=https://web.archive.org/web/20151105223715/http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2013%2FPR_RMB_september.xml|url-status=dead}}</ref> 5th by 2015,<ref name="swift2015">{{cite web|title=RMB breaks into the top five as a world payments currency|url=http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2015%2FPR_RMB_into_the_top_five.xml|publisher=[[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]]|date=28 January 2015|access-date=20 October 2015|archive-date=8 December 2015|archive-url=https://web.archive.org/web/20151208122028/http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2015%2FPR_RMB_into_the_top_five.xml|url-status=dead}}</ref> but 6th in 2019.<ref>{{cite web|url=https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/document-centre|title=RMB Tracker January 2020 – Slides|date=21 January 2020|website=Society for Worldwide Interbank Financial Telecommunication|url-status=dead|archive-url=https://web.archive.org/web/20200215120936/https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/document-centre|archive-date=15 February 2020|access-date=16 February 2020}}</ref>

On 1 October 2016, the renminbi became the first [[Finance:Emerging market|emerging market]] currency to be included in the [[Organization:International Monetary Fund|IMF]]'s [[Finance:Special drawing rights|special drawing rights]] basket, the basket of currencies used by the IMF as a reserve currency.<ref name="Solomon Teague">{{cite news | author= Solomon Teague | title= FX: RMB joins the SDR basket | url= http://www.euromoney.com/Article/3591357/Category/0/ChannelPage/207402/FX-RMB-joins-the-SDR-basket.html | publisher= Euromoney | date= 6 October 2016 | access-date= 6 October 2016 | archive-date= 15 February 2017 | archive-url= https://web.archive.org/web/20170215013448/http://www.euromoney.com/Article/3591357/Category/0/ChannelPage/207402/FX-RMB-joins-the-SDR-basket.html | url-status= dead }}</ref> Its initial weighting in the basket was 10.9%.<ref name=":024">{{Cite book |last=Jin |first=Keyu |title=The New China Playbook: Beyond Socialism and Capitalism |date=2023 |publisher=Viking |isbn=978-1-9848-7828-1 |location=New York |author-link=Keyu Jin}}</ref>{{Rp|page=259}}

[[File:USD-CNY exchange rate.webp|thumb|center|579px|USD/CNY exchange rate 1981–2022]]

== Terminology ==
{| class="wikitable"
!
!Chinese 
![[Pinyin|pinyin]]
!English
!Literal translation
|-
|Formal currency name
|{{lang|zh-cn|{{linktext|人民币}}}} 
|{{lang-zh|labels=no|p=rénmínbì}}
|renminbi
|"people's currency"
|-
|Formal name for 1 unit
|{{lang|zh-cn|{{linktext|元}}}} or {{lang|zh-cn|{{linktext|圆}}}} 
|{{lang-zh|labels=no|p=yuán}}
|yuan
|"unit"
|-
|Formal name for {{frac|10}} unit
|{{lang|zh|{{linktext|角}}}}
|{{lang-zh|labels=no|p=jiǎo}}
|jiao
|"corner"
|-
|Formal name for {{frac|100}} unit
|{{lang|zh|{{linktext|分}}}}
|{{lang-zh|labels=no|p=fēn}}
|fen
|"fraction", "cent"
|-
|Colloquial name for 1 unit
|{{lang|zh-cn|{{linktext|块}}}}
|{{lang-zh|labels=no|p=kuài}}
|kuai or quay<ref>{{cite book |url=https://books.google.com/books?id=JgFNBQAAQBAJ&q=quay&pg=PA59 |title=Chinese Business 2.0 &#124; Internationalizing the RMB |date=10 November 2014 |isbn=9783319076775 |access-date=24 May 2019 |last1=Randau |first1=Henk R. |last2=Medinskaya |first2=Olga |publisher=Springer |archive-date=10 February 2023 |archive-url=https://web.archive.org/web/20230210075717/https://books.google.com/books?id=JgFNBQAAQBAJ&q=quay&pg=PA59 |url-status=live }}</ref>
|"piece"
|-
|Colloquial name for {{frac|10}} unit
|{{lang|zh|{{linktext|毛}}}} 
|{{lang-zh|labels=no|p=máo}}
|mao
|"feather"
|}

The [[ISO 4217|ISO code]] for the renminbi is ''CNY'', the PRC's country code (CN) plus "Y" from "yuan".<ref name=mulvey>{{cite web
|archive-url=https://web.archive.org/web/20191202165322/https://www.bbc.com/news/10413076
|archive-date=2 December 2019
|url=https://www.bbc.com/news/10413076
|title=Why China's currency has two names
|publisher=BBC News
|last=Mulvey
|first=Stephen
|date=26 June 2010
}}</ref> [[Place:Hong Kong|Hong Kong]] markets that trade renminbi at free-floating rates use the unofficial code '''CNH'''. This is to distinguish the rates from those fixed by Chinese central banks on the mainland.<ref>{{cite web
|archive-url=https://web.archive.org/web/20150418072032/http://www.ecrresearch.com/chinas-currency-rmb-cny-cnh
|archive-date=18 April 2015
|url=http://www.ecrresearch.com/chinas-currency-rmb-cny-cnh
|title=China's currency: the RMB, CNY, CNH…
}}</ref> The abbreviation ''RMB'' is not an ISO code but is sometimes used like one by banks and financial institutions.

The [[Finance:Currency symbol|currency symbol]] for the yuan unit is ¥, but when distinction from the [[Finance:Japanese yen|Japanese yen]] is required ''RMB'' (e.g. RMB&nbsp;10,000) or ''¥&nbsp;RMB'' (e.g. ¥10,000&nbsp;RMB) is used. However, in written Chinese contexts, the Chinese character for yuan ({{lang-zh|links=no|c=元|l=constituent, part|s=|t=|p=}}) or, in formal contexts {{lang-zh|links=no|c=圆|l=round}}, usually follows the number in lieu of a currency symbol.

''Renminbi'' is the name of the currency while ''yuan'' is the name of the primary unit of the renminbi. This is analogous to the distinction between "[[Finance:Pound sterling|sterling]]" and "pound" when discussing the official currency of the {{wipe|United Kingdom}}.<ref name=mulvey /> ''Jiao'' and ''fen'' are also units of renminbi.

In everyday [[Social:Mandarin Chinese|Mandarin]], kuai ({{lang-zh|links=no|c=块|p=''kuài''|l=piece}}) is usually used when discussing money and "renminbi" or "yuan" are rarely heard.<ref name=mulvey /> Similarly, Mandarin speakers typically use mao ({{lang-zh|links=no|c=毛|p=máo}}) instead of jiao.<ref name=mulvey /> For example, ¥8.74 might be read as {{zhi|c=八块七毛四}} ({{Lang-zh|p=bā kuài qī máo sì}}) in everyday conversation, but read {{zhi|c=八元七角四分}} ({{Lang-zh|p=bā yuán qī jiǎo sì fēn}}) formally.

Renminbi is sometimes referred to as the "redback", a play on "greenback", a slang term for the US dollar.<ref>{{cite web |title=Chinese Yuan Renminbi Currency |url=https://www.oanda.com/currency-converter/en/currencies/majors/cny/ |access-date=29 April 2023 |website=OANDA.COM }}</ref>

==History==
[[File:China M2 money supply vs USA money supply.png|thumb|260px|right|China M2 [[Finance:Money supply|money supply]] (red) vis-à-vis USA M2 money supply (blue)]]

The various currencies called yuan or dollar issued in mainland China as well as Taiwan, [[Place:Hong Kong|Hong Kong]], [[Place:Macau|Macau]] and [[Place:Singapore|Singapore]] were all derived from the Spanish American silver dollar, which China imported in large quantities from Spanish America from the 16th to 20th centuries. The first locally minted silver dollar or yuan accepted all over Qing dynasty China (1644–1912) was the silver dragon dollar introduced in 1889. Various banknotes denominated in dollars or yuan were also introduced, which were convertible to silver dollars until 1935 when the [[Chemistry:Silver standard|silver standard]] was discontinued and the Chinese yuan was made ''fabi'' ({{zhi|c=法币}}; legal tender fiat currency).

The renminbi was introduced by the [[Company:People's Bank of China|People's Bank of China]] in December 1948, about a year before the establishment of the People's Republic of China. It was issued only in paper form at first, and replaced the various currencies circulating in the areas controlled by the Communists. One of the first tasks of the new government was to end the [[Finance:Hyperinflation|hyperinflation]] that had plagued China in the final years of the Kuomintang (KMT) era. That achieved, a revaluation occurred in 1955 at the rate of 1 new yuan = 10,000 old yuan.

As the Chinese Communist Party took control of ever larger territories in the latter part of the Chinese Civil War, its [[Company:People's Bank of China|People's Bank of China]] began to issue a unified currency in 1948 for use in Communist-controlled territories. Also denominated in ''yuan'', this currency was identified by different names, including "People's Bank of China banknotes" ({{zh|t=中國人民銀行鈔票|s=中国人民银行钞票}}; from November 1948), "New Currency" ({{zh|t=新幣|s=新币}}; from December 1948), "People's Bank of China notes" ({{zh|t=中國人民銀行券|s=中国人民银行券}}; from January 1949), "People's Notes" (人民券, as an abbreviation of the last name), and finally "People's Currency", or "''renminbi''", from June 1949.<ref name="中华人民共和国第一套人民币概述">{{cite web |url=http://finance.sina.com.cn/money/collection/youbika/20050901/15471935211.shtml |title=中华人民共和国第一套人民币概述 |trans-title=People's Republic of China first RMB Overview |publisher=Sina |location=China |access-date=6 April 2012 |archive-date=24 February 2021 |archive-url=https://web.archive.org/web/20210224134250/http://finance.sina.com.cn/money/collection/youbika/20050901/15471935211.shtml |url-status=live }}</ref>

===Era of the command economy===
From 1949 until the late 1970s, the state fixed China's exchange rate at a highly overvalued level as part of the country's import-substitution strategy. During this time frame, the focus of the state's central planning was to accelerate industrial development and reduce China's dependence on imported manufactured goods. The overvaluation allowed the government to provide imported machinery and equipment to priority industries at a relatively lower domestic currency cost than otherwise would have been possible.

===Transition to an equilibrium exchange rate===
China's transition by the mid-1990s to a system in which the value of its currency was determined by supply and demand in a [[Finance:Foreign exchange market|foreign exchange market]] was a gradual process spanning 15 years that involved changes in the official exchange rate, the use of a dual exchange rate system, and the introduction and gradual expansion of markets for foreign exchange.

The most important move to a market-oriented exchange rate was an easing of controls on trade and other current account transactions, as occurred in several very early steps. In 1979, the State Council approved a system allowing exporters and their provincial and local government owners to retain a share of their foreign exchange earnings, referred to as foreign exchange quotas. At the same time, the government introduced measures to allow retention of part of the foreign exchange earnings from non-trade sources, such as overseas remittances, port fees paid by foreign vessels, and tourism.

As early as October 1980, exporting firms that retained foreign exchange above their own import needs were allowed to sell the excess through the state agency responsible for the management of China's exchange controls and its foreign exchange reserves, the State Administration of Exchange Control. Beginning in the mid-1980s, the government sanctioned foreign exchange markets, known as swap centres, eventually in most large cities.

The government also gradually allowed market forces to take the dominant role by introducing an "internal settlement rate" of ¥2.8 to 1 US dollar which was a devaluation of almost 100%.

===Foreign exchange certificates, 1980–1994===
In the process of opening up China to external trade and tourism, transactions with foreign visitors between 1980 and 1994 were done primarily using [[Finance:Foreign exchange certificate|Foreign exchange certificate]]s ({{zhi|c=外汇券}}, ''waihuiquan'') issued by the Bank of China.<ref>{{Cite web|url=https://www.bis-ans-ende-der-welt.net/China-X-B-En.htm|title=Banknotes • China • Heiko Otto|access-date=5 March 2022|archive-date=23 August 2019|archive-url=https://web.archive.org/web/20190823064128/https://www.bis-ans-ende-der-welt.net/China-X-B-En.htm|url-status=live}}</ref><ref>{{cite web |url=http://www.asianlii.org/cn/legis/cen/laws/protbocofec624/ |title=Provisional Regulations Of The Bank Of China Of Foreign Exchange Certificate |publisher=Asianlii.org |date=1980-03-19 |access-date=2022-03-15 |archive-date=5 March 2022 |archive-url=https://web.archive.org/web/20220305053042/http://www.asianlii.org/cn/legis/cen/laws/protbocofec624/ |url-status=live }}</ref><ref>{{cite web |url=https://www.bankofchina.com/en/aboutboc/ab7/200809/t20080926_1601850.html |title=Foreign Exchange Certificates Issued under Improved Forex Administration (1979–1989) |publisher=Bankofchina.com |date=1980-04-01 |access-date=2022-03-15 |archive-date=5 March 2022 |archive-url=https://web.archive.org/web/20220305054044/https://www.bankofchina.com/en/aboutboc/ab7/200809/t20080926_1601850.html |url-status=live }}</ref>
Foreign currencies were exchangeable for FECs and vice versa at the renminbi's prevailing official rate which ranged from US$1 = ¥2.8&nbsp;FEC to ¥5.5&nbsp;FEC. The FEC was issued as banknotes from ¥0.1 to ¥100, and was officially at par with the renminbi. Tourists used FECs to pay for accommodation as well as tourist and luxury goods sold in Friendship Stores. However, given the non-availability of foreign exchange and Friendship Store goods to the general public, as well as the inability of tourists to use FECs at local businesses, an illegal [[Finance:Black market|black market]] developed for FECs where touts approached tourists outside hotels and offered over ¥1.50&nbsp;RMB in exchange for ¥1&nbsp;FEC. In 1994, as a result of foreign exchange management reforms approved by the 14th CPC Central Committee, the renminbi was officially devalued from US$1 = ¥5.5 to over ¥8, and the FEC was retired at ¥1&nbsp;FEC = ¥1&nbsp;RMB in favour of tourists directly using the renminbi.

===Evolution of exchange policy since 1994===
In November 1993, the Third Plenum of the Fourteenth CPC Central Committee approved a comprehensive reform strategy in which foreign exchange management reforms were highlighted as a key element for a market-oriented economy. A floating exchange rate regime and convertibility for renminbi were seen as the ultimate goal of the reform. Conditional convertibility under current account was achieved by allowing firms to surrender their foreign exchange earning from current account transactions and purchase foreign exchange as needed. Restrictions on Foreign Direct Investment (FDI) was also loosened and capital inflows to China surged.

===Convertibility===
During the era of the command economy, the value of the renminbi was set to unrealistic values in exchange with Western currency and severe currency exchange rules were put in place, hence the dual-track currency system from 1980 to 1994 with the renminbi usable only domestically, and with Foreign Exchange Certificates (FECs) used by foreign visitors.

In the late 1980s and early 1990s, China worked to make the renminbi more convertible. Through the use of swap centres, the exchange rate was eventually brought to more realistic levels of above ¥8/US$1 in 1994 and the FEC was discontinued. It stayed above ¥8/$1 until 2005 when the renminbi's peg to the dollar was loosened and it was allowed to appreciate.

As of 2013, the renminbi is convertible on [[Finance:Current account (balance of payments)|current account]]s but not [[Finance:Capital account|capital account]]s. The ultimate goal has been to make the renminbi fully convertible. However, partly in response to the Asian financial crisis in 1998, China has been concerned that the Chinese financial system would not be able to handle the potential rapid cross-border movements of [[Finance:Hot money|hot money]], and as a result, as of 2012, the currency trades within a narrow band specified by the Chinese central government.

Following the [[Finance:Internationalization of the renminbi|internationalization of the renminbi]], on 30 November 2015, the [[Organization:International Monetary Fund|IMF]] voted to designate the renminbi as one of several main world currencies, thus including it in the basket of [[Finance:Special drawing rights|special drawing rights]]. The renminbi became the first emerging market currency to be included in the IMF's SDR basket on 1 October 2016.<ref name="Solomon Teague"/> The other main world currencies are the {{wipe|United States dollar}}, the [[Finance:Euro|euro]], [[Finance:Pound sterling|sterling]], and the [[Finance:Japanese yen|yen]].<ref>{{cite news | first=Keith | last=Bradsher | title=China's Renminbi Is Approved by I.M.F. as a Main World Currency | url=https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?emc=dlbkpm&emc=edit_dlbkpm_20151130&nl=%3Fnl%3Ddlbk&nlid=64450146&_r=0 | newspaper=NY Times | date=30 November 2015 | access-date=30 November 2015 | archive-date=23 April 2021 | archive-url=https://web.archive.org/web/20210423003710/https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?emc=dlbkpm&emc=edit_dlbkpm_20151130&nl=%3Fnl%3Ddlbk&nlid=64450146&_r=0 | url-status=live }}</ref>

=== Digital renminbi ===
{{Main|Finance:Digital renminbi}}
In October 2019, China's central bank, [[Company:People's Bank of China|PBOC]], announced that a digital reminbi is going to be released after years of preparation.<ref name=nikkeiasia-20191231>{{cite news |url=https://asia.nikkei.com/Business/Markets/Currencies/China-s-digital-yuan-takes-shape-with-new-encryption-law |title=China's digital yuan takes shape with new encryption law |last=Tabeta |first=Shunsuke |website=Nikkei Asia |date=31 December 2019 |access-date=11 October 2020 |archive-date=14 December 2021 |archive-url=https://web.archive.org/web/20211214112746/https://asia.nikkei.com/Business/Markets/Currencies/China-s-digital-yuan-takes-shape-with-new-encryption-law |url-status=live }}</ref> This version of the currency, also called DCEP (Digital Currency Electronic Payment),<ref>{{cite web|url=https://www.hkma.gov.hk/eng/news-and-media/press-releases/2019/11/20191106-3/|title=Hong Kong Monetary Authority – Hong Kong FinTech Week 2019|last=Authority|first=Hong Kong Monetary|website=Hong Kong Monetary Authority|language=en|access-date=10 November 2019|archive-date=5 December 2021|archive-url=https://web.archive.org/web/20211205212717/https://www.hkma.gov.hk/eng/news-and-media/press-releases/2019/11/20191106-3/|url-status=live}}</ref> can be “decoupled” from the banking system to give visiting tourists a taste of the nation's burgeoning [[Finance:Cashless society|cashless society]].<ref>{{cite web|url=https://www.scmp.com/business/banking-finance/article/3036543/chinas-digital-currency-tsar-says-e-payment-platforms-may|title=Digital yuan tsar gives green light for tourists to go cashless in China|date=6 November 2019|website=South China Morning Post|language=en|access-date=10 November 2019|archive-date=5 December 2021|archive-url=https://web.archive.org/web/20211205231544/https://www.scmp.com/business/banking-finance/article/3036543/chinas-digital-currency-tsar-says-e-payment-platforms-may|url-status=live}}</ref>  The announcement received a variety of responses: some believe it is more about domestic control and surveillance.<ref>{{Cite news|url=https://www.reuters.com/article/us-china-markets-digital-currency-idUSKBN1XB3QP|title=China's proposed digital currency more about policing than progress|date=1 November 2019|work=Reuters|access-date=10 November 2019|language=en|archive-date=5 December 2021|archive-url=https://web.archive.org/web/20211205231509/https://www.reuters.com/article/us-china-markets-digital-currency-idUSKBN1XB3QP|url-status=live}}</ref> Some argue that the real barriers to internationalisation of the renminbi are China's capital controls, which it has no plans to remove. Maximilian Kärnfelt, an expert at the Mercator Institute for China Studies, said that a digital renminbi "would not banish many of the problems holding the renminbi back from more use globally". He went on to say, "Much of China's financial market is still not open to foreigners and property rights remain fragile."<ref name="ft.c_Virtual_control">{{cite web |title=Virtual control: the agenda behind China's new digital currency |last1=Kynge |first1=James |last2=Yu |first2=Sun |newspaper=[[Social:Financial Times|Financial Times]] |date=16 February 2021 |access-date=20 February 2021 |url= https://www.ft.com/content/7511809e-827e-4526-81ad-ae83f405f623 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/7511809e-827e-4526-81ad-ae83f405f623 |archive-date=10 December 2022 |url-access=subscription}}</ref>

The PBOC has filed more than 80 patents surrounding the integration of a [[Finance:Digital currency|digital currency]] system, choosing to embrace the [[Finance:Blockchain|blockchain]] technology. The patents reveal the extent of China's digital currency plans. The patents, seen and verified by the ''[[Social:Financial Times|Financial Times]]'', include proposals related to the issuance and supply of a central bank digital currency, a system for interbank settlements that uses the currency, and the integration of digital currency wallets into existing retail bank accounts. Several of the 84 patents reviewed by the ''Financial Times'' indicate that China may plan to [[Algorithm|algorithm]]ically adjust the supply of a central bank digital currency based on certain triggers, such as loan [[Finance:Interest rate|interest rate]]s. Other patents are focused on building digital currency [[Smart card|chip cards]] or digital currency wallets that banking consumers could potentially use, which would be linked directly to their bank accounts. The patent filings also point to the proposed ‘[[Finance:Tokenomics|tokenomics]]’ being considered by the DCEP working group. Some patents show plans towards programmed inflation control mechanisms. While the majority of the patents are attributed to the PBOC's Digital Currency Research Institute, some are attributed to state-owned corporations or subsidiaries of the Chinese central government.<ref name=ft-20200212>{{cite news |url=https://www.ft.com/content/f10e94cc-4d74-11ea-95a0-43d18ec715f5 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/f10e94cc-4d74-11ea-95a0-43d18ec715f5 |archive-date=10 December 2022 |url-status=live |title=Patents reveal extent of China's digital currency plans |author1=Hannah Murphy |author2=Yuan Yang |newspaper=Financial Times |url-access=subscription |date=12 February 2020 |access-date=3 May 2020}}</ref>

Uncovered by the [[Organization:Chamber of Digital Commerce|Chamber of Digital Commerce]] (an American non-profit advocacy group), their contents shed light on Beijing's mounting efforts to digitise the renminbi, which has sparked alarm in the West and spurred central bankers around the world to begin exploring similar projects.<ref name=ft-20200212/> Some commentators have said that the U.S., which has no current plans to issue a government-backed digital currency, risks falling behind China and risking its dominance in the global financial system.<ref>{{cite web|date=17 March 2021|title=Is the US worried it is falling behind China's digital currency?|url=https://www.scmp.com/economy/china-economy/article/3125658/china-digital-currency-us-worried-it-falls-behind-curve-race|access-date=9 April 2021|website=South China Morning Post|language=en|archive-date=24 December 2021|archive-url=https://web.archive.org/web/20211224205538/https://www.scmp.com/economy/china-economy/article/3125658/china-digital-currency-us-worried-it-falls-behind-curve-race|url-status=live}}</ref> Victor Shih, a China expert and professor at the University of California San Diego, said that merely introducing a digital currency "doesn't solve the problem that some people holding renminbi offshore will want to sell that renminbi and exchange it for the dollar", as the dollar is considered to be a safer asset.<ref name="qz.c_Why_China's">{{cite web |title=The same problems plaguing the yuan will plague China's digital currency |last=Hui |first=Mary |publisher=Quartz |date=10 September 2020 |access-date=11 April 2021 |url=https://qz.com/1899402/why-chinas-digital-yuan-wont-internationalize-the-renminbi/ |archive-date=10 November 2021 |archive-url=https://web.archive.org/web/20211110233132/https://qz.com/1899402/why-chinas-digital-yuan-wont-internationalize-the-renminbi/ |url-status=live }}</ref> Eswar Prasad, an economics professor at [[Organization:Cornell University|Cornell University]], said that the digital renminbi "will hardly put a dent in the dollar's status as the dominant global reserve currency" due to the United States' "economic dominance, deep and liquid capital markets, and still-robust institutional framework".<ref name="qz.c_Why_China's"/><ref name="proj_China's_Digital">{{cite web |title=China's Digital Currency Will Rise but Not Rule |last=Prasad |first=Eswar |publisher=Project Syndicate |date=25 August 2020 |access-date=11 April 2021 |url=https://www.project-syndicate.org/commentary/china-digital-currency-will-not-threaten-dollar-by-eswar-prasad-2020-08 |archive-date=14 September 2020 |archive-url=https://web.archive.org/web/20200914045004/https://www.project-syndicate.org/commentary/china-digital-currency-will-not-threaten-dollar-by-eswar-prasad-2020-08 |url-status=live }}</ref> The U.S. dollar's share as a [[Finance:Reserve currency|reserve currency]] is above 60%, while that of the renminbi is about 2%.<ref name="qz.c_Why_China's"/>

In April 2020, ''{{wipe|The Guardian}}'' reported that the digital currency e-RMB had been adopted into multiple cities' monetary systems and "some government employees and public servants [will] receive their salaries in the digital currency from May. ''The Guardian'' quoted a ''China Daily'' report which stated "A sovereign digital currency provides a functional alternative to the dollar settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level. It may also facilitate integration into globally traded currency markets with a reduced risk of politically inspired disruption."<ref name=guardian-20200428>{{cite news |url=https://www.theguardian.com/world/2020/apr/28/china-starts-major-trial-of-state-run-digital-currency |title=China starts major trial of state-run digital currency |first=Helen |last=Davidson |newspaper=The Guardian |date=28 April 2020 |access-date=3 May 2020 |archive-date=17 December 2021 |archive-url=https://web.archive.org/web/20211217233146/https://www.theguardian.com/world/2020/apr/28/china-starts-major-trial-of-state-run-digital-currency |url-status=live }}</ref> There were talks of testing out the digital renminbi in the Beijing Winter Olympics in 2022, but China's overall timetable for rolling out the digital currency was unclear.<ref>{{cite web|date=2 June 2020|title=What is China's new digital currency all about?|url=https://www.kitco.com/news/2020-06-02/What-is-China-s-new-digital-currency-all-about.html|access-date=3 June 2020|website=Kitco News|archive-date=9 March 2021|archive-url=https://web.archive.org/web/20210309090219/https://www.kitco.com/news/2020-06-02/What-is-China-s-new-digital-currency-all-about.html|url-status=live}}</ref>

=== Interest rate & Green bonds ===
In May 2023, RMB interest rate swaps was launched.<ref name=":0">{{Cite web |title=Hong Kong: HKD-RMB Dual Counter Model in Hong Kong's stock market {{!}} IF |url=https://www.iflr1000.com/NewsAndAnalysis/Hong-Kong-HKD-RMB-Dual-Counter-Model-in-Hong-Kongs-stock-market/Index/14147 |access-date=2023-07-19 |website=www.iflr1000.com}}</ref> In June 2023, under the Government Green Bond Programme, the Government of the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR) announced a green bonds offering, of approximately US$6 billion denominated in USD, [[Finance:Euro|EUR]] and RMB.<ref name=":0" /><ref>{{Cite web |last=Authority |first=Hong Kong Monetary |title=Hong Kong Monetary Authority - HKSAR Government's Institutional Green Bonds Offering |url=https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/06/20230601-5/ |access-date=2023-07-19 |website=Hong Kong Monetary Authority |language=en}}</ref>

==Issuance==
As of 2019, renminbi banknotes are available in denominations from ¥0.1, ¥0.5 (1 and 5 jiao), ¥1, ¥5, ¥10, ¥20, ¥50 and ¥100. These denominations have been available since 1955, except for the ¥20 notes (added in 1999 with the fifth series) ¥50 and ¥100 notes (added in 1987 with the fourth series). Coins are available in denominations from ¥0.01 to ¥1 (¥0.01–1). Thus some denominations exist in both coins and banknotes. On rare occasions, larger yuan coin denominations such as ¥5 have been issued to commemorate events but use of these outside of collecting has never been widespread.

The denomination of each banknote is printed in simplified written Chinese. The numbers themselves are printed in financial{{NoteTag|A set of numeral characters used traditionally in financial and accounting settings, not used in daily writing; see [[Chinese numerals]]}} Chinese numeral characters, as well as [[Arabic numerals]]. The denomination and the words "People's Bank of China" are also printed in [[Social:Mongolian language|Mongolian]], [[Social:Standard Tibetan|Tibetan]], [[Social:Uyghur language|Uyghur]] and [[Social:Standard Zhuang|Zhuang]] on the back of each banknote, in addition to the boldface Hanyu Pinyin "Zhongguo Renmin Yinhang" (without tones). The right front of the note has a tactile representation of the denomination in Chinese Braille starting from the fourth series. See corresponding section for detailed information.<!-- [[File:Yuan collection.jpg|thumb|200px|Collection of Chinese yuan (renminbi) banknotes. {{frac|10}} yuan to 10 yuan notes are of the fourth series of the renminbi. 20 to 100 yuan (red) are of the fifth series of the renminbi. The polymer note on the lower right commemorates the third millennium.]] -->

The ''fen'' and ''jiao'' denominations have become increasingly unnecessary as prices have increased. Coins under ¥0.1 are used infrequently. Chinese retailers tend to avoid fractional values (such as ¥9.99), opting instead to round to the nearest yuan (such as ¥9 or ¥10).<ref>{{cite news | author= Coldness Kwan | title= Do you get one fen change at Origus? | url= http://www.chinadaily.com.cn/china/2007-03/06/content_821037.htm | newspaper= China Daily | date= 6 March 2007 | access-date= 26 March 2007 | archive-date= 11 March 2007 | archive-url= https://web.archive.org/web/20070311205825/http://www.chinadaily.com.cn/china/2007-03/06/content_821037.htm | url-status= live }}</ref>

===Coins===
In 1953, [[Chemistry:Aluminium|aluminium]] ¥0.01, ¥0.02, and ¥0.05 coins began being struck for circulation, and were first introduced in 1955. These depict the national emblem on the obverse (front) and the name and denomination framed by [[Biology:Wheat|wheat]] stalks on the reverse (back). In 1980, [[Chemistry:Brass|brass]] ¥0.1, ¥0.2, and ¥0.5 and cupro-nickel ¥1 coins were added, although the ¥0.1 and ¥0.2 were only produced until 1981, with the last ¥0.5 and ¥1 issued in 1985. All jiǎo coins depicted similar designs to the fēn coins while the yuán depicted the Great Wall of China.

In 1991, a new coinage was introduced, consisting of an aluminium ¥0.1, brass ¥0.5 and [[Chemistry:Nickel|nickel]]-[[Physics:Cladding (metalworking)|clad]] steel ¥1. These were smaller than the previous jiǎo and yuán coins and depicted flowers on the obverse and the national emblem on the reverse. Issuance of the aluminium ¥0.01 and ¥0.02 coins ceased in 1991, with that of the ¥0.05 halting in 1994. The small coins were still struck for annual uncirculated mint sets in limited quantities, and from the beginning of 2005, the ¥0.01 coin got a new lease on life by being issued again every year since then up to present.

New designs of the ¥0.1, ¥0.5 (now brass-[[Physics:Plating|plated]] steel), and ¥1 (nickel-plated steel) were again introduced in between 1999 and 2002. The ¥0.1 was significantly reduced in size, and in 2005 its composition was changed from aluminium to more durable nickel-plated steel. An updated version of these coins was announced in 2019. While the overall design is unchanged, all coins including the ¥0.5 are now of nickel-plated steel, and the ¥1 coin was reduced in size.<ref>{{cite web|url=https://numismag.com/en/2019/04/30/new-chinese-coins-of-1-yuan-0-5-yuan-and-0-1-yuan-2019/|title=New Chinese coins of 1 yuan, 0.5 yuan and 0.1 yuan – 2019New Chinese coins of 1 yuan, 0.5 yuan and 0.1 yuan – 2019|date=30 April 2019|access-date=3 June 2021|archive-date=3 June 2021|archive-url=https://web.archive.org/web/20210603132800/https://numismag.com/en/2019/04/30/new-chinese-coins-of-1-yuan-0-5-yuan-and-0-1-yuan-2019/|url-status=live}}</ref><ref>{{cite web|url=http://www.xinhuanet.com/english/2019-08/30/c_138351669.htm|archive-url=https://web.archive.org/web/20190831022944/http://www.xinhuanet.com/english/2019-08/30/c_138351669.htm|url-status=dead|archive-date=31 August 2019|title = China issues new edition of renminbi bills, coins – Xinhua &#124; English.news.cn}}</ref>

The frequency of usage of coins varies between different parts of China, with coins typically being more popular in urban areas (with 5-jiǎo and 1-yuán coins used in vending machines), and small notes being more popular in rural areas. Older fēn and large jiǎo coins are uncommonly still seen in circulation, but are still valid in exchange.

===Banknotes===
As of 2023, there have been five series of renminbi banknotes issued by the People's Republic of China:<ref>H. Wang and F. Boecking, Money, https://maoeraobjects.ac.uk/object-biographies/money/ accessed 23 Sept 2023.</ref><ref>Schwartz, Peter J. 'The Ideological Antecedents of the First-Series Renminbi Worker-and�Peasant Banknote or What Mao Tse-tung May Have Owed to Dziga Vertov’. ''Transcultural Studies'', Jul 2014.</ref><ref>Tim F. Liao and Cuntong Wang, 'The Changing Face of Money: Forging Collective Memory with Chinese Banknote Designs’, China Review vol. 18, no. 2, Special themed section: Frontiers and Ethnic Groups in China (May 2018): 87-120.</ref><ref>Helen Wang, ‘Mao on Money’, East Asia Journal vol.1, no.2 (2004): 86-97.</ref>
* The first series of renminbi banknotes was issued on 1 December 1948, by the newly founded [[Company:People's Bank of China|People's Bank of China]]. It introduced notes in denominations of ¥1, ¥5, ¥10, ¥20, ¥50, ¥100 and ¥1,000 yuan. Notes for ¥200, ¥500, ¥5,000 and ¥10,000 followed in 1949, with ¥50,000 notes added in 1950. A total of 62 different designs were issued. The notes were officially withdrawn on various dates between 1 April and 10 May 1955. The name "first series" was given retroactively in 1950, after work began to design a new series.<ref name="中华人民共和国第一套人民币概述"/>
:These first renminbi notes were printed with the words "[[Company:People's Bank of China|People's Bank of China]]", "Republic of China", and the denomination, written in Chinese characters by Dong Biwu.<ref>{{cite web |url=http://www.cjiyou.net/html/2007-10/34498.htm |title=中国最早的一张人民币 |publisher=Cjiyou.net |date=22 October 2007 |access-date=6 April 2012 |archive-url=https://web.archive.org/web/20081207141523/http://www.cjiyou.net/html/2007-10/34498.htm |archive-date=7 December 2008 |url-status=dead }}</ref>
* The second series of renminbi banknotes was introduced on 1 March 1955 (but dated 1953). Each note has the words "People's Bank of China" as well as the denomination in the [[Social:Uyghur language|Uyghur]], [[Social:Standard Tibetan|Tibetan]], [[Social:Mongolian language|Mongolian]] and [[Social:Standard Zhuang|Zhuang]] languages on the back, which has since appeared in each series of renminbi notes. The denominations available in banknotes were ¥0.01, ¥0.02, ¥0.05, ¥0.1, ¥0.2, ¥0.5, ¥1, ¥2, ¥3, ¥5 and ¥10. Except for the three fen denominations and the ¥3 which were withdrawn, notes in these denominations continued to circulate. Good examples of this series have gained high status with banknote collectors. 
* The third series of renminbi banknotes was introduced on 15 April 1962, though many denominations were dated 1960. New dates would be issued as stocks of older dates were gradually depleted. The sizes and design layout of the notes had changed but not the order of colours for each denomination. For the next two decades, the second and third series banknotes were used concurrently. The denominations were of ¥0.1, ¥0.2, ¥0.5, ¥1, ¥2, ¥5 and ¥10. The third series was phased out during the 1990s and then was recalled completely on 1 July 2000.
* The fourth series of renminbi banknotes was introduced between 1987 and 1997, although the banknotes were dated 1980, 1990, or 1996. They were withdrawn from circulation on 1 May 2019. Banknotes are available in denominations of ¥0.1, ¥0.2, ¥0.5, ¥1, ¥2, ¥5, ¥10, ¥50 and ¥100. Like previous issues, the colour designation for already existing denominations remained in effect. The second to fourth series of renminbi banknotes were designed by professors at the Central Academy of Art including Luo Gongliu and Zhou Lingzhao. 
* The fifth series of renminbi banknotes and coins was progressively introduced from its introduction in 1999. This series also bears the issue years 2005 (all except ¥1), 2015 (¥100 only) and 2019 (¥1, ¥10, ¥20 and ¥50). As of 2019, it includes banknotes for ¥1, ¥5, ¥10, ¥20, ¥50 and ¥100. Significantly, the fifth series uses the portrait of Chinese Communist Party chairman [[Biography:Mao Zedong|Mao Zedong]] on all banknotes, in place of the various leaders, workers and representations of China's ethnic groups which had been featured previously. During this series new security features were added, the ¥2 denomination was discontinued, the colour pattern for each note was changed and a new denomination of ¥20 was introduced for this series. A revised series of coins of ¥0.1, ¥0.5 and ¥1 and banknotes of ¥1, ¥10, ¥20 and ¥50 were issued for general circulation on 30 August 2019. The ¥5 banknote of the fifth series will be issued with new printing technology in a bid to reduce counterfeiting of Chinese currency, and will be issued for circulation in November 2020.

===Commemorative issues of the renminbi banknotes===
In 1999, a commemorative red ¥50 note was issued in honour of the 50th anniversary of the establishment of the People's Republic of China. This note features Chinese Communist Party chairman [[Biography:Mao Zedong|Mao Zedong]] on the front and various animals on the back.

An orange [[Chemistry:Polymer banknote|polymer note]], commemorating the new millennium was issued in 2000 with a face value of ¥100. This features a [[Unsolved:Chinese dragon|dragon]] on the obverse and the reverse features the China Millennium monument (at the Center for Cultural and Scientific Fairs).

For the 2008 Beijing Olympics, a green ¥10 note was issued featuring the Bird's Nest Stadium on the front with the back showing a classical Olympic discus thrower and various other athletes.

On 26 November 2015, the People's Bank of China issued a blue ¥100 commemorative note to commemorate aerospace science and technology.<ref>[http://banknotenews.com/files/e2786e68fc83280d97560edae1c1a155-3685.php China new 100-yuan aerospace commemorative note reported for 26.11.2015 introduction] {{Webarchive|url=https://web.archive.org/web/20151118090616/http://www.banknotenews.com/files/e2786e68fc83280d97560edae1c1a155-3685.php |date=18 November 2015 }} BanknoteNews.com. 6 November 2015. Retrieved on 18 November 2015.</ref><ref>[http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/2973267/index.html 中国人民银行公告〔2015〕第33号] {{Webarchive|url=https://web.archive.org/web/20210423011421/http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/2973267/index.html |date=23 April 2021 }} The People's Bank of China (www.pbc.gov.cn). Retrieved on 18 November 2015.</ref>

In commemoration of the 70th Anniversary of the issuance of the Renminbi, the People's Bank of China issued 120&nbsp;million ¥50 banknotes on 28 December 2018.

In commemoration of the 2022 Winter Olympics, the People's Bank of China issued ¥20 commemorative banknotes in both paper and polymer in December 2021.

In commemoration of the 2024 Chinese New Year, the People's Bank of China issued ¥20 commemorative banknotes in polymer in January 2024.

===Use in ethnic minority regions of China===
[[File:RMB2-5yan-1B.gif|thumb|right|The second series of the renminbi had the most readable minority languages text, but no Zhuang text on it. Its issue of ¥0.1–0.5 even highlighted the Mongolian text.]]
[[File:RMB10 PBOC languages.JPG|thumb|right|"People's Bank of China Ten Yuan" written in five different languages on the fifth series of the renminbi. From top to bottom and left to right: [[Pinyin|Mandarin pinyin]], Mongolian, Tibetan, Uyghur, and Zhuang languages.]]
[[File:RMB1-5000-3B.gif|thumb|right|A special edition designed for Inner Mongolia in the first series of the renminbi.]]

The renminbi yuan has different names when used in ethnic minority regions of China. 
* When used in [[Place:Inner Mongolia|Inner Mongolia]] and other Mongol autonomies, a yuan is called a '''tugreg''' ({{lang-mn|{{MongolUnicode|ᠲᠦᠭᠦᠷᠢᠭ᠌}}, төгрөг}} ''tügürig''). However, when used in the republic of Mongolia, it is still named '''yuani''' ({{lang-mn|юань}}) to differentiate it from [[Finance:Mongolian tögrög|Mongolian tögrög]] ({{lang-mn|төгрөг}}). One Chinese tügürig (tugreg) is divided into 100 '''mönggü''' ({{lang-mn|{{MongolUnicode|ᠮᠥᠩᠭᠦ}}, мөнгө}}), one Chinese jiao is labeled "10 mönggü". In [[Social:Mongolian language|Mongolian]], renminbi is called '''aradin jogos''' or '''arad-un jogos''' ({{lang-mn|{{MongolUnicode|ᠠᠷᠠᠳ ᠤᠨ ᠵᠣᠭᠣᠰ}}, ардын зоос}} ''arad-un ǰoγos'').
* When used in Tibet and other Tibetan autonomies, a yuan is called a '''gor''' ({{bo|t=སྒོར་|z=Gor}}). One gor is divided into 10 '''gorsur''' ({{bo|t=སྒོར་ཟུར་|z=Gorsur}}) or 100 '''gar''' ({{Bo|t=སྐར་|z=gar}}). In Tibetan, renminbi is called '''mimangxogngü''' ({{bo|t=མི་དམངས་ཤོག་དངུལ།|z=Mimang Xogngü}}) or '''mimang shog ngul'''.
* When used in the Uyghur autonomy region of [[Place:Xinjiang|Xinjiang]], the renminbi is called '''Xelq puli''' ({{lang-ug|خەلق پۇلى}})

===Production and minting===
Renminbi currency production is carried out by a state owned corporation, China Banknote Printing and Minting Corporation ('''CBPMC'''; {{lang|zh|中国印钞造币总公司}}) headquartered in [[Place:Beijing|Beijing]].<ref>{{cite web|url=http://www.cbpm.cn/cn/|archive-url=https://web.archive.org/web/20130504224841/http://www.cbpm.cn/English/|url-status=dead|script-title=zh:中国印钞造币总公司官网|archive-date=4 May 2013|website=www.cbpm.cn}}</ref> CBPMC uses several printing, engraving and minting facilities around the country to produce banknotes and coins for subsequent distribution. Banknote printing facilities are based in Beijing, [[Place:Shanghai|Shanghai]], Chengdu, Xi'an, Shijiazhuang, and Nanchang. Mints are located in Nanjing, Shanghai, and Shenyang. Also, high grade paper for the banknotes is produced at two facilities in Baoding and Kunshan. The Baoding facility is the largest facility in the world dedicated to developing banknote material according to its website.<ref>{{cite web|url=http://www.cbpmc.com.cn/ssqy/bdyc/gyqy_fzlc.htm|archive-url=https://web.archive.org/web/20090303133421/http://www.cbpmc.com.cn/ssqy/bdyc/gyqy_fzlc.htm|url-status=dead|script-title=zh:保定钞票纸厂|archive-date=3 March 2009}}</ref> In addition, the [[Company:People's Bank of China|People's Bank of China]] has its own printing technology research division that researches new techniques for creating banknotes and making counterfeiting more difficult.

===Suggested future design===
On 13 March 2006, some delegates to an advisory body at the National People's Congress proposed to include Sun Yat-sen and [[Biography:Deng Xiaoping|Deng Xiaoping]] on the renminbi banknotes. However, the proposal was not adopted.<ref>{{cite news|author=Quentin Sommerville|url=http://news.bbc.co.uk/2/hi/asia-pacific/4801486.stm|title=China mulls Mao banknote change|work=BBC News|date=13 March 2006|access-date=18 March 2007|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423025544/http://news.bbc.co.uk/2/hi/asia-pacific/4801486.stm|url-status=live}}</ref>

==Economics==
===Value===
{{stack begin}}
{{Most traded currencies}}
{{stack end}}
[[File:USD rate to CNY from 1981 to 2019.svg|thumb|300px|1 US dollar to renminbi, since 1981]]

For most of its early history, the renminbi was [[Finance:Fixed exchange-rate system|pegged]] to the U.S. dollar at ¥2.46 per dollar. During the 1970s, it was revalued until it reached ¥1.50 per dollar in 1980. When China's economy gradually opened in the 1980s, the renminbi was devalued in order to improve the competitiveness of Chinese exports. Thus, the official exchange rate increased from ¥1.50 in 1980 to ¥8.62 by 1994 (the lowest rate on record). Improving current account balance during the latter half of the 1990s enabled the Chinese government to maintain a peg of ¥8.27 per US$1 from 1997 to 2005.

The renminbi reached a record high exchange value of ¥6.0395 to the US dollar on 14 January 2014.<ref>{{cite web|url=http://www.binarytribune.com/day-trading-academy/chinese-yuan-currency-profile-part-ii|work=Binary Tribune|title=Profile of China's Yuan – Characteristics and Economic Indicators|access-date=21 December 2014|archive-date=2 November 2019|archive-url=https://web.archive.org/web/20191102205855/http://www.binarytribune.com/day-trading-academy/chinese-yuan-currency-profile-part-ii|url-status=live}}</ref> Chinese leadership have been raising the yuan to tame inflation, a step U.S. officials have pushed for years to lower the massive trade deficit with China.<ref>Yahoo Finance, [https://finance.yahoo.com/news/Dollar-extends-slide-on-views-apf-3112272241.html?x=0&sec=topStories&pos=7&asset=&ccode= Dollar extends slide on views of low US rates] {{Webarchive|url=https://web.archive.org/web/20110503203639/http://finance.yahoo.com/news/Dollar-extends-slide-on-views-apf-3112272241.html?x=0&sec=topStories&pos=7&asset=&ccode= |date=3 May 2011 }}. Retrieved 29 April 2011.</ref> Strengthening the value of the renminbi also fits with the Chinese transition to a more consumer-led economic growth model.<ref>{{cite web|url=http://chinapower.csis.org/renminbi-undervalued/|title=Is the Renminbi undervalued or overvalued?|date=11 February 2016|publisher=CSIS China Power|access-date=26 August 2016|archive-date=18 November 2021|archive-url=https://web.archive.org/web/20211118220520/https://chinapower.csis.org/renminbi-undervalued/|url-status=live}}</ref> 
 
In 2015 the [[Company:People's Bank of China|People's Bank of China]] again devalued their country's currency. {{As of|2015|9|1}}, the exchange rate for US$1 is ¥6.38.

===Depegged from the US dollar===
On 21 July 2005, the peg was finally lifted, which saw an immediate one-time renminbi revaluation to ¥8.11 per dollar.<ref>{{cite web|date=21 July 2005 |url=http://www.pbc.gov.cn/english//detail.asp?col=6400&ID=542 |title=Public Announcement of the People's Bank of China on Reforming the RMB Exchange Rate Regime |url-status=dead |archive-url=https://web.archive.org/web/20070316163534/http://www.pbc.gov.cn/english/ |archive-date=16 March 2007 }}</ref> The exchange rate against the [[Finance:Euro|euro]] stood at ¥10.07060 per euro.

However, the peg was reinstituted unofficially when the financial crisis hit: "Under intense pressure from Washington, China took small steps to allow its currency to strengthen for three years starting in July 2005. But China 're-pegged' its currency to the dollar as the financial crisis intensified in July 2008."<ref>{{cite web | date=10 June 2010 | url=http://www.marketwatch.com/story/geithner-takes-strong-stand-on-china-currency-2010-06-10?pagenumber=1 | title='Critically important' that China move on currency: Geithner. Treasury chief says he shares Congress' ire over dollar peg | access-date=10 June 2010 | archive-date=23 April 2021 | archive-url=https://web.archive.org/web/20210423193651/https://www.marketwatch.com/story/geithner-takes-strong-stand-on-china-currency-2010-06-10?pagenumber=1 | url-status=live }}</ref>

On 19 June 2010, the People's Bank of China released a statement simultaneously in Chinese and English claiming that they would "proceed further with reform of the renminbi exchange rate regime and increase the renminbi exchange rate flexibility".<ref>[http://www.pbc.gov.cn/english/detail.asp?col=6400&id=1488 Further reform of the RMB exchange rate regime and enhancing the RNM exchange rate flexibility] {{webarchive |url=https://web.archive.org/web/20150403104144/http://www.pbc.gov.cn/english/detail.asp?col=6400&id=1488 |date=3 April 2015 }}</ref> The news was greeted with praise by world leaders including [[Biography:Barack Obama|Barack Obama]], Nicolas Sarkozy and Stephen Harper.<ref>{{cite news | title=Global Leaders Welcome China's Yuan Plan | url=https://www.wsj.com/articles/SB10001424052748704365204575316512609162050?mod=WSJ_Markets_LeadStory | newspaper=Wall Street Journal | first1=Michael M. | last1=Phillips | first2=Ian | last2=Talley | date=21 June 2010 | access-date=8 August 2017 | archive-date=22 April 2021 | archive-url=https://web.archive.org/web/20210422171716/https://www.wsj.com/articles/SB10001424052748704365204575316512609162050?mod=WSJ_Markets_LeadStory | url-status=live }}</ref> The [[Company:People's Bank of China|PBoC]] maintained there would be no "large swings" in the currency. The renminbi rose to its highest level in five years and markets worldwide surged on Monday, 21 June following China's announcement.<ref>{{cite web | title = World stocks soar after Chinese move on yuan | url = https://www.google.com/hostednews/afp/article/ALeqM5gTL-hG_nDdnmwzgwNuP51AVtVbqQ | access-date = 12 November 2016 | archive-date = 24 May 2012 | archive-url = https://web.archive.org/web/20120524170306/http://www.google.com/hostednews/afp/article/ALeqM5gTL-hG_nDdnmwzgwNuP51AVtVbqQ | url-status = dead }}</ref>

In August 2015, Joseph Adinolfi, a reporter for MarketWatch, reported that China had re-pegged the renminbi. In his article, he narrated that "Weak trade data out of China, released over the weekend, weighed on the currencies of Australia and New Zealand on Monday. But the yuan didn't budge. Indeed, the Chinese currency, also known as the renminbi, has been remarkably steady over the past month despite the huge selloff in China's stock market and a spate of disappointing economic data. Market strategists, including Simon Derrick, chief currency strategist at BNY Mellon, and Marc Chandler, head currency strategist at Brown Brothers Harriman, said that is because China's policy makers have effectively re-pegged the yuan. “When I look at the dollar-renminbi right now, that looks like a fixed exchange rate again. They’ve re-pegged it,” Chandler said."<ref>{{cite news |url=http://www.marketwatch.com/story/china-has-effectively-re-pegged-the-yuan-2015-08-10 |title=China has effectively re-pegged the yuan |first=Joseph |last=Adinolfi |work=Market Watch |date=10 August 2015 |access-date=28 November 2015 |archive-date=23 April 2021 |archive-url=https://web.archive.org/web/20210423135535/https://www.marketwatch.com/story/china-has-effectively-re-pegged-the-yuan-2015-08-10 |url-status=live }}</ref>

===Managed float===
The renminbi has now moved to a [[Finance:Managed float regime|managed floating exchange rate]] based on market supply and demand with reference to a [[Finance:Currency basket|basket]] of foreign currencies. In July 2005, the daily trading price of the US dollar against the renminbi in the inter-bank foreign exchange market was allowed to float within a narrow band of 0.3% around the central parity<ref>{{cite web|last1=KWAN|first1=C.H.|url=http://www.rieti.go.jp/en/columns/a01_0179.html|publisher=RIETI|title=How China's managed floating system under BBC rules actually works|access-date=21 March 2015|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423172527/https://www.rieti.go.jp/en/columns/a01_0179.html|url-status=live}}</ref> published by the [[Company:People's Bank of China|People's Bank of China]]; in a later announcement published on 18 May 2007, the band was extended to 0.5%.<ref>{{cite web|date=18 May 2007 |url=http://www.pbc.gov.cn/english//detail.asp?col=6400&ID=837 |title=Public Announcement of the People's Bank of China on Enlarging the Floating Band of the RMB Trading Prices against the US Dollar in the Inter-bank Spot Foreign Exchange Market |url-status=dead |archive-url=https://web.archive.org/web/20070316163534/http://www.pbc.gov.cn/english/ |archive-date=16 March 2007 }}</ref> On 14 April 2012, the band was extended to 1.0%.<ref>{{cite web | date=14 April 2012 | url=http://articles.marketwatch.com/2012-04-14/markets/31340930_1_china-economist-yuan-renminbi | title=China to widen daily yuan band vs. dollar to 1% | url-status=dead | archive-url=https://web.archive.org/web/20130410023405/http://articles.marketwatch.com/2012-04-14/markets/31340930_1_china-economist-yuan-renminbi | archive-date=10 April 2013 | df=dmy-all }}</ref> On 17 March 2014, the band was extended to 2%.<ref>{{cite news|last=Wang|first=Wynne|url=https://online.wsj.com/news/articles/SB10001424052702304026304579450152960381232?KEYWORDS=yuan+2+band+march&mg=reno64-wsj|newspaper=The Wall Street Journal|title=China's Yuan Falls Further Against Dollar|access-date=14 March 2017|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423140322/https://www.wsj.com/articles/SB10001424052702304026304579450152960381232|url-status=live}}</ref> China has stated that the basket is dominated by the {{wipe|United States dollar}}, [[Finance:Euro|euro]], [[Finance:Japanese yen|Japanese yen]] and South Korean won, with a smaller proportion made up of [[Finance:Pound sterling|sterling]], [[Physics:Thai baht|Thai baht]], roubles, [[Finance:Australian dollar|Australian dollar]]s, [[Finance:Canadian dollar|Canadian dollar]]s and [[Finance:Singapore dollar|Singaporean dollars]].<ref>{{cite web | date=10 August 2005 | url=http://www.chinanews.com.cn/news/2005/2005-08-10/26/610367.shtml | title=央行行长周小川在央行上海总部揭牌仪式上的讲话 | access-date=24 February 2010 | archive-date=4 October 2010 | archive-url=https://web.archive.org/web/20101004160438/http://www.chinanews.com.cn/news/2005/2005-08-10/26/610367.shtml | url-status=live }}</ref>

On 10 April 2008, it traded at ¥6.9920 per US dollar, which was the first time in more than a decade that a dollar had bought less than ¥7,<ref>{{cite news|url=https://www.nytimes.com/2008/04/10/business/worldbusiness/10cnd-yuan.html|title=Yuan Hits Milestone Against Dollar|author=David Barboza|newspaper=New York Times|date=10 April 2008|access-date=11 April 2008|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423075755/https://www.nytimes.com/2008/04/10/business/worldbusiness/10cnd-yuan.html|url-status=live}}</ref> and at ¥11.03630 per euro.

Beginning in January 2010, Chinese and non-Chinese citizens have an annual exchange limit of a maximum of US$50,000. Currency exchange will only proceed if the applicant appears in person at the relevant bank and presents their passport or Chinese ID. Currency exchange transactions are centrally registered. The maximum dollar withdrawal is $10,000 per day, the maximum purchase limit of US dollars is $500 per day. This stringent management of the currency leads to a bottled-up demand for exchange in both directions. It is viewed as a major tool to keep the currency peg, preventing inflows of "[[Finance:Hot money|hot money]]".

A shift of Chinese reserves into the currencies of their other trading partners has caused these nations to shift more of their reserves into dollars, leading to no great change in the value of the renminbi against the dollar.<ref>{{cite news |last=Frangos |first=Alex |url=https://blogs.wsj.com/japanrealtime/2010/09/16/dont-worry-about-china-japan-will-finance-us-debt/ |title=Don't Worry About China, Japan Will Finance U.S. Debt |work=The Wall Street Journal |date=16 September 2010 |access-date=4 August 2017 |archive-date=8 August 2020 |archive-url=https://web.archive.org/web/20200808041652/https://blogs.wsj.com/japanrealtime/2010/09/16/dont-worry-about-china-japan-will-finance-us-debt/ |url-status=live }}</ref>

===Futures market===
Renminbi [[Finance:Futures contract|futures]] are traded at the [[Company:Chicago Mercantile Exchange|Chicago Mercantile Exchange]]. The futures are cash-settled at the exchange rate published by the People's Bank of China.<ref>{{cite web|url=http://www.cmegroup.com/rulebook/CME/III/250/270/270.pdf|title=Chinese Renminbi Futures|publisher=CME Group|access-date=19 February 2010|archive-date=19 February 2017|archive-url=https://web.archive.org/web/20170219013425/http://www.cmegroup.com/rulebook/CME/III/250/270/270.pdf|url-status=live}}</ref>

===Purchasing power parity===
Scholarly studies suggest that the yuan is undervalued on the basis of [[Finance:Purchasing power parity|purchasing power parity]] analysis. One 2011 study suggests a 37.5% undervaluation.<ref name="Lipman 2011"/>

* The [[Organization:World Bank|World Bank]] estimated that, by purchasing power parity, one [[Finance:Geary–Khamis dollar|International dollar]] was equivalent to approximately ¥1.9 in 2004.<ref>{{cite web|url=http://devdata.worldbank.org/wdi2006/contents/Table4_14.htm|archive-url=https://web.archive.org/web/20100710061859/http://devdata.worldbank.org/wdi2006/contents/Table4_14.htm|url-status=dead|title=World Bank: ''World Development Indicators 2006''|archive-date=10 July 2010}}</ref>
* The [[Organization:International Monetary Fund|International Monetary Fund]] estimated that, by purchasing power parity, one International dollar was equivalent to approximately ¥3.462 in 2006, ¥3.621 in 2007, ¥3.798 in 2008, ¥3.872 in 2009, ¥3.922 in 2010, ¥3.946 in 2011, ¥3.952 in 2012, ¥3.944 in 2013 and ¥3.937 in 2014.<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?pr.x=41&pr.y=7&sy=2006&ey=2014&scsm=1&ssd=1&sort=country&ds=.&br=1&c=924&s=PPPEX&grp=0&a= |title=World Economic Outlook Database, April 2009 |publisher=IMF |access-date=6 January 2015 |archive-date=23 April 2021 |archive-url=https://web.archive.org/web/20210423132152/https://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?pr.x=41&pr.y=7&sy=2006&ey=2014&scsm=1&ssd=1&sort=country&ds=.&br=1&c=924&s=PPPEX&grp=0&a= |url-status=live }}</ref>

The People's Bank of China lowered the renminbi's daily fix to the US dollar by 1.9 per cent to ¥6.2298 on 11 August 2015. The People's Bank of China again lowered the renminbi's daily fix to the US dollar from ¥6.620 to ¥6.6375 after Brexit on 27 June 2016. It had not been this low since December 2010.

===Internationalisation===
{{main|Finance:Internationalization of the renminbi}}
[[File:Putin wenjiabao1.jpeg|thumb|On 24 November 2010, Vladimir Putin announced that Russia's bilateral trade with China would be settled in roubles and yuan, instead of {{wipe|United States dollar}}s.<ref>{{cite magazine|title=Quotes of the Day|url=http://content.time.com/time/quotes/0,26174,2033058,00.html|magazine={{wipe|Time (magazine)}}|access-date=13 October 2013|date=24 November 2010|archive-date=25 February 2021|archive-url=https://web.archive.org/web/20210225170506/http://content.time.com/time/quotes/0,26174,2033058,00.html|url-status=live}}</ref>]]

Before 2009, the renminbi had little to no exposure in the international markets because of strict government controls by the central Chinese government that prohibited almost all export of the currency, or use of it in international transactions. Transactions between Chinese companies and a foreign entity were generally denominated in {{wipe|United States dollar}}s. With Chinese companies unable to hold US dollars and foreign companies unable to hold Chinese yuan, all transactions would go through the [[Company:People's Bank of China|People's Bank of China]]. Once the sum was paid by the foreign party in dollars, the central bank would pass the settlement in renminbi to the Chinese company at the state-controlled exchange rate.

In June 2009 the Chinese officials announced a pilot scheme where business and trade transactions were allowed between limited businesses in Guangdong province and [[Place:Shanghai|Shanghai]], and only counterparties in [[Place:Hong Kong|Hong Kong]], [[Place:Macau|Macau]], and select [[Organization:ASEAN|ASEAN]] nations. Proving a success,<ref>{{cite web|url=https://china.ucsd.edu/_files/renminbi/pdf-rmb-JinZhongxia.pdf|title=The Use of RMB in International Transactions|access-date=2 July 2016|archive-date=8 June 2021|archive-url=https://web.archive.org/web/20210608073631/https://china.ucsd.edu/_files/renminbi/pdf-rmb-JinZhongxia.pdf|url-status=live}}</ref> the program was further extended to 20 Chinese provinces and counterparties internationally in July 2010, and in September 2011 it was announced that the remaining 11 Chinese provinces would be included.

In steps intended to establish the renminbi as an international [[Finance:Reserve currency|reserve currency]], China has agreements with {{wipe|Russia}}, Vietnam, Sri Lanka, Thailand, and {{wipe|Japan}}, allowing trade with those countries to be settled directly in renminbi instead of requiring conversion to US dollars, with {{wipe|Australia}} and {{wipe|South Africa}} to follow soon.<ref>{{cite news |url=https://www.nytimes.com/2011/02/11/business/global/11yuan.html |title=In China, Tentative Steps Toward a Global Currency |first=David |last=Barboza |work=The New York Times |date=11 February 2011 |access-date=23 February 2017 |archive-date=23 April 2021 |archive-url=https://web.archive.org/web/20210423025154/https://www.nytimes.com/2011/02/11/business/global/11yuan.html |url-status=live }}</ref><ref>{{cite web |url=http://news.xinhuanet.com/english/video/2012-05/30/c_131620286.htm |title=China, Japan to launch yuan-yen direct trading |date=30 May 2012 |publisher=Xinhuanet |access-date=10 June 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120602021021/http://news.xinhuanet.com/english/video/2012-05/30/c_131620286.htm |archive-date=2 June 2012 }}</ref><ref>{{cite web |url=http://www.abc.net.au/news/2013-04-08/pm-flags-dollar-yuan-currency-deal/4615882 |title=ANZ, Westpac to lead Chinese currency conversion |date=8 April 2013 |publisher=Australian Broadcasting Corporation |access-date=8 April 2013 |archive-date=6 April 2021 |archive-url=https://web.archive.org/web/20210406065424/https://www.abc.net.au/news/2013-04-08/pm-flags-dollar-yuan-currency-deal/4615882 |url-status=live }}</ref><ref>{{cite web |url=http://www.cbsl.gov.lk/pics_n_docs/09_lr/_docs/directions/bsd/BSD_2011/bsd_BO_2011_1.pdf |title=Designated Foreign Currencies – Central Bank of Sri Lanka |date=27 October 2011 |publisher=Central Bank of Sri Lanka |access-date=24 January 2014 |archive-url=https://web.archive.org/web/20140202174747/http://www.cbsl.gov.lk/pics_n_docs/09_lr/_docs/directions/bsd/BSD_2011/bsd_BO_2011_1.pdf |archive-date=2 February 2014 |url-status=dead }}</ref><ref>{{cite web |url=http://news.xinhuanet.com/english/2015-07/08/c_134394394.htm |archive-url=https://web.archive.org/web/20160206132020/http://news.xinhuanet.com/english/2015-07/08/c_134394394.htm |url-status=dead |archive-date=6 February 2016 |title=Bank of China to serve as yuan clearing bank in S. Africa|date=8 July 2015 |publisher=Xinhua |access-date=22 July 2015}}</ref> In September 2023, the Renminbi passed the euro as the second most utilized currency in international trade, having tripled in the last three years.<ref>Melissa Lawford. Reporter for ''The Telegraph''. (24 December 2023). "How Xi Jinping is challenging dollar dominance with landmark Saudi deal". [https://finance.yahoo.com/news/xi-jinping-challenging-dollar-dominance-120000057.html Yahoo Finance website] Retrieved 25 December 2023.</ref>

===International reserve currency===
Currency restrictions regarding renminbi-denominated bank deposits and financial products were greatly liberalised in July 2010.<ref>{{cite news |url=http://www.ft.com/cms/s/0/2ff1d6ea-9a65-11df-87fd-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/2ff1d6ea-9a65-11df-87fd-00144feab49a.html |archive-date=10 December 2022 |url-access=subscription |title=China revs up renminbi expansion |first=Robert |last=Cookson |work=The Financial Times |date=28 July 2010}}</ref> In 2010 renminbi-denominated bonds were reported to have been purchased by Malaysia's central bank<ref>{{cite news |url=http://www.ft.com/cms/s/0/fecc16fc-c417-11df-b827-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/fecc16fc-c417-11df-b827-00144feab49a.html |archive-date=10 December 2022 |url-access=subscription |title=Malaysian bond boost for renminbi |first1=Kevin |last1=Brown |first2=Robert |last2=Cookson |first3=Geoff |last3=Dyer |work=The Financial Times |location=Asia-Pacific |date=19 September 2010 |access-date=7 October 2013}}</ref> and that [[Company:McDonald's|McDonald's]] had issued renminbi denominated [[Finance:Corporate bond|corporate bond]]s through Standard Chartered Bank of Hong Kong.<ref>[https://archive.today/20120710224427/http://english.cri.cn/6826/2010/08/19/1821s589555.htm " McDonald's RMB Corporate Bond Launched in HK"] 19 August 2010 Xinhua Web Editor: Xu Leiying, accessed 7 October 2013</ref> Such liberalisation allows the yuan to look more attractive as it can be held with higher return on investment yields, whereas previously that yield was virtually none. Nevertheless, some national banks such as Bank of Thailand (BOT) have expressed a serious concern about renminbi since BOT cannot substitute the deprecated US dollars in its US$200&nbsp;billion foreign exchange reserves for renminbi as much as it wishes because:
#The Chinese government has not taken full responsibilities and commitments on economic affairs at global levels.
#The renminbi still has not become well-liquidated (fully convertible) yet.
#The Chinese government still lacks deep and wide vision about how to perform fund-raising to handle international loans at global levels.<ref>{{cite web|url=http://www.mcot.net/cfcustom/cache_page/202740.html|title=ธปท.หาทางถ่วงน้ำหนักทุนสำรองหลังดอลลาร์สหรัฐผันผวน|trans-title=BOT. Weighted for the reserves after the US dollar volatility.|publisher=MCOT|access-date=30 April 2011|url-status=dead|archive-url=https://web.archive.org/web/20110926230042/http://www.mcot.net/cfcustom/cache_page/202740.html|archive-date=26 September 2011}}</ref>

To meet IMF requirements, China gave up some of its tight control over the currency.<ref>{{cite news|last=Bradsher|first=Keith|url=https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well&_r=0|title=China's Renminbi Is Approved by I.M.F. as a Main World Currency|date=30 November 2015|work={{wipe|The New York Times}}|access-date=22 August 2018|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423011415/https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well&_r=0|url-status=live}}</ref>

Countries that are left-leaning in the political spectrum had already begun to use the renminbi as an alternative reserve currency to the United States dollar; the Central Bank of Chile reported in 2011 to have US$91&nbsp;million worth of renminbi in reserves, and the president of the Central Bank of Venezuela, Nelson Merentes, made statements in favour of the renminbi following the announcement of reserve withdrawals from Europe and the United States.<ref>{{cite news |first=Diego |last=Laje |date=29 September 2011 |url=http://business.blogs.cnn.com/2011/09/29/china-yuan-moving-toward-global-currency/ |title=China's yuan moving toward global currency? |work=CNN Business |url-status=dead |archive-url=https://web.archive.org/web/20111001062849/http://business.blogs.cnn.com/2011/09/29/china-yuan-moving-toward-global-currency/ |archive-date=1 October 2011 }}</ref>

In Africa, the central banks of Ghana, Nigeria, and South Africa either hold renminbi as a reserve currency or have taken steps to purchase bonds denominated in renminbi.<ref name="august">{{cite news |title=Chinese yuan penetrates African markets |url=https://www.un.org/africarenewal/magazine/august-2014/chinese-yuan-penetrates-african-markets |work=African Renewal |date=August 2014 |access-date=14 October 2018 |archive-date=31 July 2021 |archive-url=https://web.archive.org/web/20210731075429/https://www.un.org/africarenewal/magazine/august-2014/chinese-yuan-penetrates-african-markets |url-status=live }}</ref> The "Report on the Internationalization of RMB in 2020", which was released by the People's Bank of China in August 2020, said that renminbi's function as international reserve currency has gradually emerged. In the first quarter 2020, the share of renminbi in global foreign exchange reserves rose to 2.02%, a record high. As of the end of 2019, the People's Bank of China has set up renminbi clearing banks in 25 countries and regions outside of mainland China, which has made the use of renminbi more secure and transaction costs have decreased.<ref>{{cite web |title=《2020年人民币国际化报告》发布：人民币在全球外汇储备中占比创新高|url=http://www.xinhuanet.com/fortune/2020-08/15/c_1126371624.htm |website= Xinhua Net |access-date=18 August 2020|archive-url=https://web.archive.org/web/20200819024639/http://www.xinhuanet.com/fortune/2020-08/15/c_1126371624.htm|archive-date=19 August 2020}}</ref>

===Use as a currency outside mainland China===
[[File:Chinese Yuan to Hong Kong Dollar exchange rate.webp|thumb|310px|
{{legend|#DE2910|Chinese Yuan / [[Finance:Hong Kong dollar|Hong Kong Dollar]] [[Finance:Exchange rate|exchange rate]]|outline=#FFDE00}}
]]
The two special administrative regions, [[Place:Hong Kong|Hong Kong]] and [[Place:Macau|Macau]], have their own respective currencies, according to the "one country, two systems" principle and the basic laws of the two territories.<ref>{{cite web | date= 4 April 1990 | url= http://www.info.gov.hk/basic_law/fulltext/content0202.htm | title= The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China | access-date= 23 March 2007 | quote= Article 18: National laws shall not be applied in the Hong Kong Special Administrative Region except for those listed in Annex III to this Law. | archive-date= 15 September 2008 | archive-url= https://web.archive.org/web/20080915174723/http://www.info.gov.hk/basic_law/fulltext/content0202.htm | url-status= live }}</ref><ref>{{cite web | date= 31 March 1993 | url= http://www.umac.mo/basiclaw/english/ch2.html | title= The Basic Law of the Macao Special Administrative Region of the People's Republic of China | access-date= 23 March 2007 | quote= Article 18: National laws shall not be applied in the Macao Special Administrative Region except for those listed in Annex m to this Law. | archive-date= 5 March 2007 | archive-url= https://web.archive.org/web/20070305125541/http://www.umac.mo/basiclaw/english/ch2.html | url-status= dead }}</ref> Therefore, the [[Finance:Hong Kong dollar|Hong Kong dollar]] and the [[Finance:Macanese pataca|Macanese pataca]] remain the legal tenders in the two territories, and the renminbi, although sometimes accepted, is not legal tender. Banks in Hong Kong allow people to maintain accounts in RMB.<ref>{{cite news | title=Hong Kong banks to conduct personal renminbi business on trial basis | url=http://www.info.gov.hk/hkma/eng/press/2003/20031118e4.htm | publisher=Hong Kong Monetary Authority | date=18 November 2003 | access-date=22 March 2007 | archive-date=5 April 2005 | archive-url=https://web.archive.org/web/20050405194119/http://www.info.gov.hk/hkma/eng/press/2003/20031118e4.htm | url-status=live }}</ref> Because of changes in legislation in July 2010, many banks around the world<ref>{{cite news | title=Bank of China New York Offers Renminbi Deposits | url=http://www.bocusa.com/portal/Info?id=652&lang=1& | access-date=15 February 2011 | archive-date=22 February 2011 | archive-url=https://web.archive.org/web/20110222000911/http://www.bocusa.com/portal/Info?id=652&lang=1& | url-status=dead }}</ref> are now slowly offering individuals the chance to hold deposits in Chinese renminbi.

The renminbi had a presence in Macau even before the 1999 return to the People's Republic of China from Portugal. Banks in Macau can issue credit cards based on the renminbi, but not loans. Renminbi-based credit cards cannot be used in Macau's casinos.<ref>{{cite news | title=Macao gets green light for RMB services | url=http://www.chinadaily.com.cn/english/doc/2004-08/05/content_359235.htm | newspaper=China Daily | date=5 August 2004 | access-date=22 March 2007 | archive-date=23 April 2021 | archive-url=https://web.archive.org/web/20210423025132/http://www.chinadaily.com.cn/english/doc/2004-08/05/content_359235.htm | url-status=live }}</ref>

The Republic of China, which governs Taiwan, believes wide usage of the renminbi would create an [[Finance:Black market|underground economy]] and undermine its sovereignty.<ref>{{cite news|title=Regular Press Briefing of the Mainland Affairs Council |url=http://www.mac.gov.tw/english/english/macnews/enews/enews960105.htm |publisher=Mainland Affairs Council |date=5 January 2007 |access-date=21 March 2007 |url-status=dead |archive-url=https://web.archive.org/web/20070927003905/http://www.mac.gov.tw/english/english/macnews/enews/enews960105.htm |archive-date=27 September 2007}}</ref> Tourists are allowed to bring in up to ¥20,000 when visiting Taiwan. These renminbi must be converted to Taiwanese currency at trial exchange sites in Matsu and Kinmen.<ref>{{cite news | title=CBC head urges immediate liberalization of reminbi conversion | url=http://www.taiwanheadlines.gov.tw/ct.asp?xItem=56017&ctNode=6 | publisher=Government Information Office, Taiwan | date=26 December 2006 | access-date=21 March 2007 | archive-url=https://web.archive.org/web/20070207101017/http://www.taiwanheadlines.gov.tw/ct.asp?xItem=56017&ctNode=6 | archive-date=7 February 2007 | url-status=dead | df=dmy-all }}</ref> The Chen Shui-bian administration insisted that it would not allow full [[Finance:Convertibility|convertibility]] until the mainland signs a bilateral foreign exchange settlement agreement,<ref>{{cite news | title=Taiwan prepares to allow renminbi exchange | url=http://www.ft.com/cms/s/13eecafa-9acf-11db-bbd2-0000779e2340.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/13eecafa-9acf-11db-bbd2-0000779e2340.html |archive-date=10 December 2022 |url-access=subscription |url-status=live | newspaper=Financial Times | date=3 January 2007 | access-date=13 March 2007}}</ref> though president Ma Ying-jeou, who served from 2008 to 2016, sought to allow full convertibility as soon as possible.

The renminbi circulates<ref name=peoplesdaily/> in some of China's neighbors, such as {{wipe|Pakistan}}, Mongolia<ref name=takungpao>{{cite web |url= http://www.takungpao.com/news/09/05/06/_IN-1077521.htm |title= 人民幣在蒙古國被普遍使用 |publisher= Ta Kung Pao (大公報) |date= 6 May 2009 |access-date= 3 June 2010 |archive-date= 9 July 2023 |archive-url= https://web.archive.org/web/20230709172708/http://www.takungpao.com/news/09/05/06/_IN-1077521.htm |url-status= dead }}</ref><ref>{{cite news|title=Widely used in Mongolia |url=http://chinanewswrap.com/2009/05/07/mongolians-prefer-the-renminbi-to-the-us-dollar |publisher=chinanewswrap.com |date=7 May 2009 |url-status=dead |archive-url=https://web.archive.org/web/20120225141710/http://chinanewswrap.com/2009/05/07/mongolians-prefer-the-renminbi-to-the-us-dollar |archive-date=25 February 2012}}</ref> and northern Thailand.<ref>{{cite news | title=Asian Monetary Cooperation: Perspective of RMB Asianalization | url=http://www.newasiaforum.org/china_zhang_runlin.pdf | access-date=28 January 2016 | archive-date=24 February 2021 | archive-url=https://web.archive.org/web/20210224142301/http://www.newasiaforum.org/china_zhang_runlin.pdf | url-status=live }}</ref> Cambodia welcomes the renminbi as an official currency and Laos and Myanmar allow it in border provinces such as Wa and [[Place:Kokang|Kokang]] and economic zones like Mandalay.<ref name=peoplesdaily/> Though unofficial, Vietnam recognizes the exchange of the renminbi to the [[Finance:Vietnamese đồng|đồng]].<ref name=peoplesdaily>{{cite news | title=RMB increases its influence in neighbouring areas | url=http://english.peopledaily.com.cn/200402/17/eng20040217_134974.shtml | newspaper=People's Daily | date=17 February 2004 | access-date=13 January 2007 | archive-date=6 July 2014 | archive-url=https://web.archive.org/web/20140706120908/http://english.peopledaily.com.cn/200402/17/eng20040217_134974.shtml | url-status=live }}</ref> In 2017 ¥215&nbsp;billion was circulating in Indonesia. In 2018 a Bilateral Currency Swap Agreement was made by the Bank of Indonesia and the Bank of China which simplified business transactions, and in 2020 about 10% of Indonesia's global trade was in renminbi.<ref name=diplomat-20200731>{{cite news |url=https://thediplomat.com/2020/07/the-internationalization-of-chinas-currency-in-indonesia/ |title=The Internationalization of China's Currency in Indonesia |author=Muhammad Zulfikar Rakhmat |publisher=The Diplomat |date=31 July 2020 |access-date=11 October 2020 |archive-date=20 October 2021 |archive-url=https://web.archive.org/web/20211020225741/https://thediplomat.com/2020/07/the-internationalization-of-chinas-currency-in-indonesia/ |url-status=live }}</ref>

Since 2007, renminbi-nominated bonds have been issued outside mainland China; these are colloquially called "dim sum bonds". In April 2011, the first [[Finance:Initial public offering|initial public offering]] denominated in renminbi occurred in Hong Kong, when the Chinese property investment trust Hui Xian REIT raised ¥10.48&nbsp;billion ($1.6&nbsp;billion) in its IPO. [[Place:Beijing|Beijing]] has allowed renminbi-denominated financial markets to develop in Hong Kong as part of the effort to internationalise the renminbi.<ref>{{cite news |title=Hong Kong's first renminbi IPO raises $1.6bn |url=http://www.ft.com/cms/s/0/39d32174-6af2-11e0-9744-00144feab49a.html?ftcamp=rss#axzz1K40sg22y |newspaper=Financial Times |access-date=20 April 2011 |archive-date=23 April 2011 |archive-url=https://web.archive.org/web/20110423004944/http://www.ft.com/cms/s/0/39d32174-6af2-11e0-9744-00144feab49a.html?ftcamp=rss#axzz1K40sg22y |url-status=live }}</ref> There is limited (under 1%) issuing of renminbi bonds in Indonesia.<ref name=diplomat-20200731/>

===Other markets===
[[File:China-CEEC Matchmaking Event 2017 (3).jpg|thumb|Renminbi promotion at the China-CEEC 2017 summit]]

Since currency flows in and out of mainland China are still restricted, renminbi traded in off-shore markets, such as the Hong Kong market, can have a different value to renminbi traded on the mainland. The offshore RMB market is usually denoted as CNH, but there is another renminbi interbank and spot market in Taiwan for domestic trading known as CNT.

Other renminbi markets include the dollar-settled non-deliverable forward (NDF), and the trade-settlement exchange rate (CNT).<ref>{{cite web |url=http://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=UHa14N6Tu3&n=282753.PDF |title=The offshore renminbi |publisher=HSBC |access-date=14 July 2012 |date=1 December 2010 |last1=Hui |first1=Daniel |last2=Bunning |first2=Dominic |url-status=dead |archive-url=https://web.archive.org/web/20121022191543/http://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=UHa14N6Tu3&n=282753.PDF |archive-date=22 October 2012 }}</ref><ref>{{cite web|url=http://treasurytoday.com/2011/05/the-birth-of-a-new-currency|date=May 2011|title=The birth of a new currency|website=Treasury Today|access-date=22 August 2018|archive-url=https://web.archive.org/web/20180822215902/http://treasurytoday.com/2011/05/the-birth-of-a-new-currency|archive-date=22 August 2018|url-status=dead}}</ref>

Note that the two CNTs mentioned above are different from each other.

== See also ==
* Chinese lunar coins
* Economy of China
* List of Chinese cash coins by inscription
* [[Finance:List of renminbi exchange rates|List of renminbi exchange rates]]
* Tibetan coins and currency

{{clear}}

== Notes ==
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== References ==
{{reflist}}

== Further reading ==
{{refbegin}}
* Ansgar Belke, Christian Dreger und Georg Erber: ''Reduction of Global Trade Imbalances: Does China Have to Revalue Its Currency?'' In: ''Weekly Report.'' 6/2010, Nr. 30, 2010, {{ISSN|1860-3343}}, S. 222–229 ([http://www.diw.de/documents/publikationen/73/diw_01.c.363191.de/diw_wr_2010-30.pdf PDF-File; DIW Online] {{Webarchive|url=https://web.archive.org/web/20110717083524/http://www.diw.de/documents/publikationen/73/diw_01.c.363191.de/diw_wr_2010-30.pdf |date=17 July 2011 }}).
* Hai Xin (2012). [https://web.archive.org/web/20121105235214/http://www.rmbhandbook.com/ ''The RMB Handbook: Trading, Investing and Hedging''], Risk Books. {{ISBN|978-1906348816}}
* Cheung, Yin-Wong (2022). "The RMB in the Global Economy". {{wipe|Cambridge University Press}}.
{{refend}}

== External links ==
* [https://web.archive.org/web/20120311112811/http://www.thebeijingguide.com/money/money3.html Photographs of all Chinese currency and sound of pronunciation in Chinese] (archived 11 March 2012)
* [https://www.bbc.com/news/10413076 Stephen Mulvey, Why China's currency has two names – BBC News, 2010-06-26]
* [http://www.bis-ans-ende-der-welt.net/China-B-En.htm Historical and current banknotes of the People's Republic of China] {{in lang|en|de}}
* [http://www.ose-erfurt.de/Reisen/China-X-B-En.htm Foreign exchange certificates (FEC) of the People's Republic of China] {{in lang|en|de}}


[[Category:Currency symbols]]

{{Sourceattribution|Renminbi}}