Money is weird. Especially when you're staring at a stack of bright red paper in a bustling Shanghai market, trying to figure out if you're holding twenty bucks or two hundred. People call it the "Yuan." Locals call it "Renminbi." Some just say "Kuai." Honestly, it’s a bit confusing at first. But once you get the hang of Chinese yuan currency notes, the whole country opens up in a way digital payments can't quite match.
Cash still matters in China. Despite what you've heard about everyone using their phones to pay for literally everything—even a single stick of spicy tofu—physical bills remain the bedrock of the financial system. If your phone dies or your international roaming glitches out, those colorful slips of paper are your only lifeline.
The Red Note and the Great Chairman
You can’t talk about Chinese money without talking about the 100-yuan note. It’s the big one. The "redback." Since the 1999 series, Mao Zedong’s face has graced the front of every single denomination. It's a bold design choice by the People's Bank of China (PBOC). Before that, the notes featured various ethnic groups and historical leaders, but now? It's all Mao, all the time.
The 100-yuan bill is the highest denomination they make. Think about that for a second. In a world where the US has $100 bills and Europe has €200 or €500 notes, China stops at 100 RMB, which is roughly $14 to $16 depending on the day's exchange rate.
Why? Because the government wants to track big transactions. If you want to buy a car in cash, you're going to need a literal suitcase. It’s a subtle way of nudging people toward digital banking. When you hold a 100-yuan note, notice the texture. The collar on Mao’s jacket feels scratchy under your thumbnail. That’s intaglio printing. It’s one of the best ways to tell if the bill is real or if someone is trying to pull a fast one on you in a crowded taxi.
Security Features That Actually Work
Counterfeiting used to be a massive headache in China. It's gotten better, but you still see shopkeepers ritualistically snapping bills or rubbing them against white paper to check for ink transfer. The 2015 "Gold" 100-yuan note was a game changer. If you tilt the bill, the large "100" in the middle shifts from gold to green. It's mesmerizing.
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How to spot a fake in three seconds
First, look at the security thread. It's that metallic line that looks like it’s woven into the paper. On the newer bills, it changes color. Second, find the watermark. Hold the bill up to the light. You should see a very clear, very detailed Mao looking back at you. If it looks blurry or like a cartoon, give it back.
The paper itself is unique. It’s not really paper; it’s a cotton fiber blend. It has a specific "snap" when you flick it. Fakes often feel too smooth or too waxy, like they were printed on a high-end office inkjet. They weren't.
The Rainbow of Smaller Denominations
Everything below the 100 is a different color. It’s helpful.
The 50 is green.
The 20 is brown (sorta).
The 10 is blue.
The 5 is purple.
The 1 is a yellowish-green.
The 20-yuan note is arguably the most beautiful. The back features the Li River in Guilin. It’s that iconic landscape with the karst mountains—those tall, skinny hills that look like something out of an ink wash painting. Most tourists spend their first day in Guilin trying to hold the 20-yuan note up to the actual river to get the perfect photo. It’s a cliché, sure, but it’s a good one.
Then you have the tiny stuff. The 1-yuan and 5-jiao notes. A "jiao" is a tenth of a yuan. These bills are small, often incredibly grimy, and they’re slowly being phased out in favor of coins, especially in big cities like Beijing or Shenzhen. In the south, people still love the small paper bills. In the north, they want the heavy coins. Nobody really knows why this regional preference exists, but it’s a thing.
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The Digital Elephant in the Room
You’ve probably heard of Alipay and WeChat Pay. They are everywhere. Honestly, you can go weeks in China without touching a single Chinese yuan currency note. You scan a QR code at a fruit stand, and you're done.
But here’s the catch for travelers: setting those up as a foreigner can be a nightmare. Sometimes your foreign credit card won't link. Sometimes the app demands a Chinese phone number you don't have yet. This is where cash saves your life. Even if the vendor looks annoyed that they have to dig around for change, they have to take it. It’s the law.
Interestingly, the PBOC is now pushing the "e-CNY," a digital version of the yuan. It’s not a cryptocurrency. It’s a central bank digital currency (CBDC). It’s designed to look like a digital version of the physical notes in your phone’s "wallet." They even have a digital serial number. It’s the future, but for now, the paper version is the backup everyone needs.
Handling Money Like a Local
When you pay with cash in China, try to use two hands. It’s a respect thing. You’ll see it in restaurants and hotels. Giving or receiving a bill with both hands shows you’re paying attention. It’s a small gesture that goes a long way.
Also, don’t be surprised if your change includes some very beat-up bills. The 1-yuan and 5-yuan notes circulate forever. They get soft, like old fabric. As long as the serial number is intact and both halves are there, they’re fine. If you get a bill that’s literally taped together, you might want to ask for a different one just to avoid the hassle of trying to spend it later.
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Where to get the best rates
Avoid the airport kiosks. Seriously. They charge a flat fee plus a terrible spread. Go to a Bank of China branch. You’ll have to bring your passport, and you’ll likely have to wait in a very organized line while holding a little paper number, but you’ll get the official rate. It’s worth the 20-minute wait if you’re changing a few hundred dollars.
Practical Steps for Your Trip
Don't arrive empty-handed. While China is a digital-first society, cash is your "get out of jail free" card.
- Exchange about 500 to 1000 yuan before you land. This covers your taxi to the hotel and your first few meals if your phone apps aren't working yet.
- Keep your 100s and 50s separate. Use the 100s for hotel deposits or high-end dinners. Use the smaller bills for snacks, water, and buses.
- Download the Alipay app early. You can now link most international Visa and Mastercard accounts. Test it at a big chain like Starbucks or McDonald's first to make sure it works before trying it at a street stall.
- Inspect your change. If someone hands you a 100-yuan note as change (which is rare), check the watermark and the "100" color-shift feature immediately.
- Keep your bills flat. Many vending machines and self-service kiosks for subway tickets are very picky about wrinkled or folded corners.
The Chinese yuan currency notes you carry are more than just money. They are a window into the country’s geography—from the Potala Palace on the 50 to the Three Gorges on the 10. They are a safety net in a high-tech world. Even as the digital yuan takes over, there is something undeniably solid about the weight of a thick stack of red 100s in your pocket.
Load your digital wallet, but keep your physical wallet stuffed. You'll thank yourself when you're in a tiny dumpling shop in a back alley where the Wi-Fi doesn't reach and the owner only accepts those "old fashioned" paper bills.
Check your bills for the "100" that changes color. Look for the scratchy texture on the collar. If you do those two things, you’re already ahead of 90% of other travelers. Handle the money with two hands, stay observant, and enjoy the sights that the bills themselves celebrate. It's a massive, complex country, and the currency is the best way to start understanding it.