What Currency Is Used in China? Your Guide to the Chinese Yuan

If you are heading to China, you are probably wondering what currency you will need.

This guide will help you understand everything about Chinese money so you can navigate your trip smoothly. 

By the time you're done reading, you'll be ready to shop, dine, and explore with ease. Let’s get into it!

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Renminbi vs. Yuan: What’s the Difference?

In China, you will come across two terms for money: Renminbi (RMB) and Yuan (CNY). 

Do not let this confuse you. It’s simple:

• Renminbi (RMB) is the official name of China’s currency, which means ‘People’s Currency.’
• Yuan (CNY) is the primary unit of the Renminbi, similar to how ‘dollar’ is the unit for U.S. currency.

So, while shopping at a Beijing market or dining in a Shanghai restaurant, prices will be listed in yuan.

You might also hear locals casually call it ‘kuai’, which is like saying ‘bucks’ instead of dollars.

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Understanding the Symbols

Chinese currency can be shown with the familiar symbol ¥, but you will also see 元, which is the Chinese character for yuan. 

Both are used interchangeably, so do not get thrown off by either symbol when you are out buying souvenirs or paying for a meal.

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Chinese Yuan Denominations: What to Expect in Your Wallet

Here’s what your Chinese yuan will look like when you are in the country:

• Banknotes: 1, 5, 10, 20, 50, and 100 yuan. Picture yourself handing over a crisp 100-yuan note, with Mao Zedong’s face printed on it, while buying a traditional silk scarf at a street market.
• Coins: The 1-yuan coin is still widely used, but smaller denominations like jiao (1/10 of a yuan) and fen (1/100 of a yuan) are rarely seen these days.

For daily transactions, you will likely be dealing with larger notes like 50 and 100 yuan. 

And even though you might get a jiao coin here or there, many places round prices up to the nearest yuan to keep things simple.

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How the Yuan Fits Into China’s Economy

The yuan isn’t just used within China; it’s also playing a growing role in global finance. 

Over the past few decades, China has pushed for the renminbi to be more widely used internationally. 

It’s even one of the International Monetary Fund’s (IMF) reserve currencies, sitting alongside the US Dollar and the Euro.

This means the yuan is becoming more influential on the world stage.

China’s central bank, the People’s Bank of China, keeps tight control over the yuan’s value to avoid major fluctuations. 

This helps stabilise the economy and makes the yuan more predictable for international businesses.

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Where the Yuan Is Used (And Where It Isn’t)

While the yuan is the currency used across Mainland China, it’s important to know that Hong Kong and Macau use their own money. 

In Hong Kong, you will need the Hong Kong Dollar (HKD), and in Macau, the Macanese Pataca (MOP) is the currency of choice.

This means if you are planning to visit Hong Kong, famous for its Victoria Harbour skyline and bustling shopping districts, or Macau, with its vibrant casinos and Portuguese architecture, you will need to exchange your yuan for local currency. 

Make sure you plan ahead for these regional differences.

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Tips for Travelers: Managing Currency in China

Travelling in China can be smooth sailing if you keep these tips in mind:

• Carry cash: In major cities like Beijing and Shanghai, you can often get by with mobile payments like WeChat Pay or Alipay, but smaller cities or rural areas still rely heavily on cash. Always have some yuan on hand for street markets, local food stalls, or tipping guides at historical sites like the Great Wall of China.
• Banknotes over coins: Especially those less than one yuan, are becoming less common. Most businesses won’t expect you to use them. For example, if you are buying a snack at a night market in Xi'an, it's more convenient to use a 10 or 20-yuan note.
• Mobile payments: If you are tech-savvy and have a Chinese SIM card, you can set up WeChat Pay or Alipay. These are widely accepted in large cities and will make everything from paying for your bullet train tickets to grabbing coffee a breeze.

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The Growing Global Influence of the Yuan

Beyond being the go-to currency in China, the yuan is becoming more important in the world of finance. 

As of 2016, it joined an elite group of currencies as part of the IMF’s Special Drawing Rights (SDR). 

This means the yuan is now used in international financial transactions, solidifying its role in global trade and investment.

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Final Thoughts

Whether you are sipping tea in a peaceful Beijing hutong or buying souvenirs in a bustling Shanghai market, understanding how the yuan works will make your trip much easier. 

Now that you know the ins and outs of Chinese money, why not start planning your trip? China is waiting to be explored, and you will be ready to dive right in—whether you are wandering through the Forbidden City or trekking up to Mount Emei. 

Safe travels!