What is the Chinese currency? As you prepare for your visit to China, this guide will provide a simple introduction to the Chinese renminbi and answer questions related to exchanging money and avoiding fake bank notes.
China’s currency can seem incredibly confusing to foreigners. Even the name “renminbi” is hard for a lot of people to pronounce correctly.
So having a basic understanding of the local money will help you in so many ways to where you will:
There’s a lot to cover here, but I promise you it’s not as intimidating as it sounds. I’ve been exchanging US dollars into China’s yuan for over a decade now and it’s always been a positive experience.
Hopefully as I answer questions, you’ll better understand how to exchange it, use it and distinguish it from counterfeit. Let’s begin!
First things first: I’m going to run you through the very basics of China’s money.
This includes a detailed explanation of what Chinese currency is called as well as the available bank notes and coins.
There are a number of different names for Chinese currency that I want to go over here. These include:
Officially, the money in China is referred to as rénmínbì (RMB or 人民币), which translates as “the People’s Currency”.
The less formal name for money is “Chinese Yuan (CNY)”, which is also how the currency is labeled in the exchange markets. If you’re not sure, the word ‘yuan’ is pronounced like saying “you + an.”
When you hear local people talk about their currency, however, they rarely use the term renminbi. Instead you’ll hear the words kuài or yuán. For example, something that costs 5 RMB is colloquially spoken as 5 kuài or 5 yuán in Mandarin.
In written form, it’s slightly different.
When you check online or visit banks to see the exchange rate for Chinese RMB, you may also see it written out as ¥ or 元, both of which are symbols or the “dollar signs” for RMB.
Although nowadays most people in China don’t carry much cash with them, everybody is still familiar with the various bank notes available. While in China, you’ll use practically every bank note that exists. The table below shows each note in circulation in China.
1 Mao/Jiao | 5 Mao/Jiao |
1 Kuai | 5 Kuai |
10 Kuai | 20 Kuai |
50 Kuai | 100 Kuai |
After familiarizing yourself with the exchange rate with your home currency, it’s pretty easy to tell how much each note is worth. Where things can get tricky are with the mao/jiao notes and coins.
Each mao or jiao (these words are used interchangeably) is worth 1/10th of 1 RMB. How Chinese use mao or jiao in spoken conversation is similar to how you communicate cents in USD.
For example if I wanted to say 5.50 RMB, I would say, “5 kuài 5 máo qián (qián means money in Mandarin) or just shorten it to 5 kuài 5.
It will take some practice developing an ear to understand for how much something costs in China, but you can get a head start using some resources I recommend for learning Mandarin or just use my go-to-trick of bringing out your phone’s calculator when asking for how much something costs in China.
In any case, you’ll likely also get decent practice at hearing Chinese currency numbers when bargaining for things in China.
Exchanging money for renminb if actually requires quite a bit of strategy if you want to get the most bang for your buck. Unfortunately, it’s not a one-size-fits-all process.
The most common ways to exchange for Chinese RMB are:
My advice?
I recommend you draw from several of these approaches. You may need to get a little cash at the airport kiosk when you land to pay for a taxi, but then you’ll want to pull from an ATM or go to a nearby bank to get the rest of your cash.
To learn more tips on how to exchange for Chinese currency, you can see my comprehensive China money exchange guide here.
When traveling internationally, there’s always the risk of receiving fake currency as you are targeted as an “unbeknownst traveler.” Luckily in China, the risk of getting your hands on fake RMB is really low.
Why?
Because the punishment for distributing fake Chinese yuan is extremely high (in some cases, the death penalty).
Regardless, you still want to travel smart and here are some tips on how to avoid fake Chinese currency.
By following these tips, you’re pretty well guaranteed to avoid any counterfeit currency finding its way into your wallet.
In the rare event you do find yourself worried your money is fake, here is how to determine whether or not this is true.
Take a careful look at a real 100 RMB note and compare it against the one you believe to be counterfeit renminbi.
Be careful! Falsely accusing someone of giving you fake RMB could potentially put yourself in an uncomfortable or dangerous situation!
In the event you do receive counterfeit money, I’d take it directly to the nearest police station without starting a fuss with whoever gives it to you. They can easily manage the situation from there, especially if you received the bills from a black market currency dealer outside a bank.
Should you receive fake notes in a taxi, ask for your receipt and also take note of the driver’s license plate before going your separate ways. Both pieces of information can help the police deal justice on your behalf.
Although credit cards never took off in China, mobile payment apps have become the primary way to pay for things in major Chinese cities in recent years.
You can use both Alipay and WeChat Pay to pay for things you buy at practically any hole-in-the-wall restaurant, taxi cab, movie theater and even cover other expenses like utilities or rent with the apps.
If you’re thinking this may be a potential loop-hole to where you can avoid exchanging for Chinese currency, don’t hold your breath as you need a Chinese bank account to use these apps.
You may have heard that WeChat added the ability to link a foreign credit card in 2018 but then in 2019 they revoked the right for that card to open a WeChat Wallet. It is now mandatory that a user have a valid Chinese bank account before mobile payments can be used.
Because of this, at least for now, mobile payment apps are generally only useful for expats moving to China. Since they are able to open a bank account in China, they can make use of WeChat and Alipay’s mobile payment system.
After reading this guide, you should now be more confident in your understanding of Chinese currency.
Before you jump on a plane to China, you need to decide on your strategy for exchanging money into Chinese yuan and then study up on the security features of Chinese money so as not to get caught with a counterfeit.
For folks planning on getting a Chinese bank account, I’d also take the information on Chinese mobile payment apps to heart as they will keep your money more secure and will bring a great deal of convenience to your life in China.
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