Economics

What is the Currency of China?

The official currency of China is the renminbi.

Renminbi

Renminbi is the currency officially used by China with yuan as its primary unit. A yuan is divided into ten jiao and further subdivided into ten fen. The People’s Bank of China issued the currency. Before the year 2015, the value of renminbi based on the United States dollar was weak. It was later devalued to boost China's industry after previous claims that the official rate of exchange was as low as 37.5%. However, after a few years, the initiatives put in place by the government of China and efforts put in place by stable banks were successful. The renminbi stood at 8% equilibrium value mid-2012.

History

During the Republic of China (ROC) era, the currency was issued in different names such as the fabi, the silver yuan, and the gold yuan. The People’s Bank of China started the circulation of renminbi in 1948, one year before the creation of the People’s Republic of China. The currency was only circulated in note form during its initial stage. The new government came in with the intention of stopping the high rate of inflation which had scourged the economy of China during the end of Kuomintang era. After the achievement, the rate of the yuan was 1 new yuan to 10,000 old yuan. As the Chinese Civil War ended, the Communist Party of China took over the administration of larger areas and consequently, the People’s Bank of China started circulating unified money for use in territories under the control of communists.

Coins

In the year 1955, the circulation of aluminum 1-, 2-, and 5- fen coins began for the first time although their production started in 1953. The frontside of the coins bore the emblem of the nation and the name denomination could be found on the backside. The addition of the cupro-nickel 1-yuan and brass 1-,2-, and 5- coins took place later. Between 1999 and 2002, a new model of one and five jiao and 1 yuan were put into use once again with the one jiao's size being smaller than the previous design. A metallic combination of 1 jiao was switched from aluminum to long-lasting steel that was nickel-plated.

Banknotes

At the beginning of 2016, the government of China issued five series of notes with the first set issued in 1948 by the People's Bank of China. The available banknotes were in the denominations of ¥1, ¥5, ¥10, ¥20, ¥50, ¥100, and ¥1,000. In the following year, banknotes of ¥200, ¥500, ¥5,000, ¥10,000 and ¥50,000 yuan joined circulation.

The second series of notes were put into circulation in the year 1955 bearing “People’s Bank of China” on the back in Mongolian, Zhuang, Tibetan, and Uyghur languages. The denominations of ¥0.01, ¥0.02, ¥0.05, ¥0.1, ¥0.2, ¥0.5, ¥1, ¥2, ¥3, ¥5 and ¥10 followed.

On April 15th 1962, the third series of the renminbi came into use with the denominations of ¥0.1, ¥0.2, ¥0.5, ¥1, ¥2, ¥5, and ¥10.

The fourth series entered the market between the years 1987 and 1997. However, the notes dated back to 1980, 1990, or 1996. Currently, the notes are still in use and available in ¥0.1, ¥0.2, ¥0.5, ¥1, ¥2, ¥5 and ¥10 denominations.

Finally, the introduction of the fifth series of renminbi banknotes and coins started in 1999 bearing the year 2005 except for ¥1. In 2016, notes with the Mao Zedong portrait were incorporated in with ¥1, ¥5, ¥10, ¥20, ¥50, and ¥100 denominations.

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