You’re standing in a bustling market in Shanghai, or maybe you're just staring at a business invoice from a supplier in Shenzhen, and you see two different names for the exact same money. One person calls it the yuan. Another calls it renminbi.
It’s confusing. Honestly, it’s one of the most common questions for anyone doing business with or traveling to the mainland. Is there a secret exchange rate between the two? No. Are they two different currencies? Not exactly.
Basically, the name of currency of china is the renminbi, but the unit you use to count it is the yuan. It’s a lot like the relationship between "sterling" and "pounds" in the UK. You wouldn’t say something costs "ten sterling," right? You’d say it costs "ten pounds." In China, the currency system is the renminbi (the people's money), but the price tag says yuan.
Understanding the Name of Currency of China: RMB vs. CNY
If you look at a currency exchange board today, January 15, 2026, you'll see the code CNY. This is the international ISO code for the Chinese Yuan. However, you will also see the abbreviation RMB everywhere.
RMB stands for Rénmínbì, which literally translates to "People’s Currency."
It’s been around since 1948, issued by the People’s Bank of China (PBOC) just before the official founding of the People's Republic. Back then, the goal was simple: stop the wild hyperinflation that was wrecking the country after years of war. They needed a unified "people's" money to replace the mess of local currencies floating around.
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The Kuai and the Mao
To make things even more interesting, if you actually talk to someone on the street in Beijing, they probably won't use the word "yuan" at all. They’ll call it kuai (pronounced kwai).
Kuai literally means "piece." It’s the equivalent of saying "bucks" in the US or "quid" in the UK.
If you’re buying a street snack and the vendor says "wu kuai," they mean five yuan. If they ask for "mao," they’re talking about the smaller units—the dimes. Technically, 1 yuan equals 10 jiao, but everyone calls them mao.
The Weird World of CNY vs. CNH
Now, if you're a business owner, this is where it gets slightly technical. China actually has a "two-tier" system for its currency. While it’s all renminbi, it behaves differently depending on where it’s being traded.
- CNY (Onshore Yuan): This is the version traded inside mainland China. The central bank (PBOC) keeps a tight grip on this. They set a "midpoint" rate every morning and only let the currency fluctuate within a 2% band.
- CNH (Offshore Yuan): This is the version traded in places like Hong Kong, London, or Singapore. It’s more of a free spirit. Its value is determined by global market demand, though it usually stays very close to the CNY rate.
Why do this? It’s basically China’s way of letting the world trade its money while still maintaining a "firewall" to protect their domestic economy from sudden global shocks. If you’re paying a Chinese supplier from a bank in New York, you’re likely dealing with CNH.
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What’s New in 2026: The Rise of e-CNY
We’ve officially entered a new era for the name of currency of china. As of January 1, 2026, China has fundamentally shifted how its digital currency works.
The digital yuan, or e-CNY, isn't just a pilot program anymore. For years, it was basically just "digital cash" that didn't earn you anything. But the rules just changed. Now, commercial banks in China are allowed to pay interest on digital yuan held in electronic wallets.
This is huge. It moves the e-CNY from being a simple payment app—like a government version of Venmo—to being a legitimate "digital deposit."
The People’s Bank of China is pushing this hard to compete with the massive dominance of private apps like Alipay and WeChat Pay. If you’re visiting China today, you’ll see e-CNY QR codes at almost every major retailer and even in subway stations. It’s the world’s most advanced Central Bank Digital Currency (CBDC), and other countries are watching it like hawks to see if it actually works.
How to Actually Pay for Stuff (It's Not How You Think)
If you walk into a coffee shop in Shenzhen with a 100-yuan bill, the barista might look at you like you just handed them a prehistoric artifact.
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China is arguably the most cashless society on Earth. Physical bills exist—all featuring the face of Mao Zedong—but they are becoming rare in big cities.
The QR Code King
Everything runs on QR codes. You don't "swipe" a card; you scan a code.
- Alipay and WeChat Pay are the two giants.
- In 2026, it's much easier for foreigners to link their Visa or Mastercard to these apps than it was a few years ago.
- You just download the app, verify your passport, and you’re good to go.
Cash is still legal tender, and shops aren't technically allowed to refuse it, but many small vendors honestly don't have change. If you try to pay for a 3-yuan bottle of water with a 100-yuan note, you might be there for a while while the shopkeeper runs to find someone with smaller bills.
The Value of the Yuan Today
As of mid-January 2026, the exchange rate is hovering around 0.14 USD per 1 CNY. Or, put another way, $1 USD gets you roughly 7.13 yuan.
This rate is always a hot topic in global politics. Some economists argue that China keeps the yuan's value intentionally low to make its exports cheaper for the rest of the world. Others say the PBOC is actually doing the opposite—propping it up to prevent money from flying out of the country.
Practical Next Steps for Navigating Chinese Currency
If you're planning a trip or a business deal, here is what you actually need to do:
- Set up Alipay before you land. Don't wait until you're at the airport struggling with the Wi-Fi. Link your international card and do the "Identity Verification" (you'll need to upload a photo of your passport).
- Keep a "emergency" 200 yuan in cash. Stash it in your bag. It’s for that one time your phone dies or you're in a rural area where the signal is spotty.
- Check your bank’s foreign transaction fees. Even if Alipay works, your home bank might charge you 3% every time you buy a dumpling. Using a travel-focused card like Wise or Revolut can save you a ton of "hidden" costs.
- Watch the CNY/CNH spread. If you’re moving large amounts of money for business, even a 0.01 difference between the onshore and offshore rates can mean thousands of dollars.
The name of currency of china might be a bit of a linguistic puzzle, but once you realize that "Renminbi" is the money and "Yuan" is how you count it, the rest is just tech and apps.