Chinese Yuan (CNY)

The Chinese Yuan (or Renminbi) is the official currency of China. The most common exchange rate with the Chinese yuan is USDCNh, i.e. the exchange rate between the yuan and the US dollar.
The ISO 4217 code that identifies the Chinese yuan is CNY, or sometimes RMB, while the reference symbol is ¥, the same as the Japanese yen.
The Chinese Yuan is made up of 10 jiao and 100 fen.

Below you will find all the information about the Chinese Yuan, as well as updates on the latest analysis and news on China’s currency.

The history of the Chinese yuan
With a history of more than 3,000 years, Chinese currency existed during the period of Imperial China. In 1914, the silver dollar was established as the official currency of the Republic of China, with the later addition in the 1930s of fen (renminbi cent) in copper and nickel. During this period, silver appreciated and China could no longer maintain the silver monetization system. In 1935, a new currency known as Fǎbì was introduced.

The Gold Yuan replaced the Fǎbì in 1948 for a conversion rate of 1 Gold Yuan per 3 million Fǎbì Yuan. That same year, the Renminbi (often called RMB) was introduced to help stabilize communist areas of mainland China. In 1955, China announced a new currency, the Yuan Renmimbi at a value of 1 new Yuan per 10,000 old Yuan.

The Yuan in Forex
During China’s planned economy period, the Chinese Yuan Renminbi was pegged to unrealistic exchange values, and as a result, strict currency guidelines were put in place. When the Chinese economy opened up to the world in 1978, the Renminbi was only used domestically, while foreigners relied on exchange certificates, thus creating a strong foreign exchange activity on the black market.

From 1997 to 2005, the Chinese government maintained a fixed exchange rate between the Chinese Yuan Renminbi and the US dollar at around 8.3 CNY to 1 USD. In 2005, the gradual introduction of a flexible exchange rate mechanism began.