You're standing at a street stall in Shanghai, smelling the sizzle of pan-fried dumplings, and you reach for your wallet. You want to pay, but you're suddenly hit with a wave of confusion. Is it the Yuan? Is it the Renminbi? Did that guy just say "kuai"?
Honestly, it’s a mess for travelers.
If you're wondering what is the chinese dollar called, the short answer is the Renminbi. But nobody actually goes around saying, "That will be five Renminbi, please." That would be like walking into a Starbucks in Seattle and asking for three units of United States Currency. It just sounds weird.
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China’s money has a bit of a split personality. It has an official name for the international stage and a practical name for everyday life. If you want to understand how the world’s second-largest economy moves its cash, you have to peel back a few layers of history and linguistics.
The big name: Renminbi vs. Yuan
Let’s get the technical stuff out of the way first. The official name of the currency is the Renminbi. In Mandarin, this literally translates to "People's Currency." It was introduced by the People's Bank of China in 1948, right around the time the People's Republic was being established. You'll see it abbreviated as RMB in banks and on financial news tickers like Bloomberg or Reuters.
But then there’s the Yuan.
Think of the Renminbi as the name of the medium, like "sterling," and the Yuan as the unit of account, like the "pound." When you're looking at a price tag, you're looking at Yuan. If you see the symbol ¥, that’s the Yuan sign (which, confusingly, is the same symbol used for the Japanese Yen, though they are completely different currencies). On the international currency exchange markets, you'll see the code CNY.
So, if a friend asks you what is the chinese dollar called, telling them it's the Yuan is correct for daily spending, but Renminbi is the "grown-up" name used by the government and global banks.
The "Kuai" Factor: What people actually say
Here is where it gets interesting. If you actually live in Beijing or Chengdu, you rarely hear the word "Yuan" in conversation. People call it kuai.
It’s slang. Well, sort of.
Historically, kuai means "piece" or "lump." Back in the day, before paper money was the norm, silver was used as a medium of exchange. People would trade "pieces" of silver. The terminology stuck. Today, if a taxi driver tells you the fare is "shí kuai," he means ten Yuan. It’s the equivalent of saying "ten bucks" or "ten quid."
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It’s informal. It’s local. It makes you sound like you actually know what you’re doing.
Breaking it down: Mao, Jiao, and Fen
The Chinese currency doesn't just stop at the Yuan. It breaks down into smaller units, though one of them is basically a ghost at this point.
- The Yuan (or Kuai): This is the primary unit. Banknotes come in denominations of 1, 5, 10, 20, 50, and 100. They all feature the face of Mao Zedong on the front.
- The Jiao (or Mao): One Yuan is divided into ten Jiao. Just to keep you on your toes, people usually call these "Mao" in conversation. Yes, it’s the same sound as the Chairman's name, but the character is different.
- The Fen: This is the equivalent of a cent. One Jiao equals ten Fen. However, due to inflation and the massive shift toward digital payments, Fen are practically extinct. You might see them in bank statements or when paying a utility bill down to the decimal, but you won’t find many people carrying Fen coins in their pockets anymore.
I remember trying to spend a Fen coin in a convenience store in Kunming a few years ago. The cashier looked at it like I was handing her a prehistoric fossil. She ended up just waving me off and rounding the price down. It wasn’t worth the effort of putting it in the register.
Why are there two different exchange rates?
This is the part that trips up business travelers and investors. If you look at a financial app, you might see two different codes: CNY and CNH.
Why? Because China keeps a tight grip on its money.
CNY is the "onshore" Yuan. This is the currency traded within mainland China. The government controls the exchange rate strictly, only allowing it to fluctuate within a narrow band each day.
CNH is the "offshore" Yuan. It’s traded in markets like Hong Kong, Singapore, and London. Because it's outside the direct control of the People's Bank of China, the price can be slightly different from the onshore rate. It’s more influenced by global supply and demand.
If you’re a tourist, you don’t need to worry about this. Your credit card or the local ATM will handle the conversion. But if you're a CFO of a multinational corporation, that tiny difference between CNY and CNH can mean millions of dollars in profit or loss.
Digital currency and the "e-CNY"
China is lightyears ahead of most of the West when it comes to ditching physical cash. In many cities, cash is almost a burden. Everyone uses WeChat Pay or Alipay. You scan a QR code on a crate of apples at a wet market, and the money moves instantly.
But the government has gone a step further with the e-CNY.
This is a Central Bank Digital Currency (CBDC). It’s not a cryptocurrency like Bitcoin. It’s literally a digital version of the Renminbi issued by the central bank. They’ve been trialing it in major cities like Shenzhen and during the Winter Olympics. The goal is to make payments faster, cheaper, and—crucially for the government—more traceable.
Common misconceptions about the "Chinese Dollar"
One of the biggest mistakes people make is assuming that because it’s called a "dollar" in casual English conversation, it behaves like the US dollar. It doesn't.
For one, the Renminbi isn't fully "convertible." You can’t just walk into a bank in Beijing and swap unlimited amounts of Yuan for US Dollars or Euros without a mountain of paperwork or a specific legal reason. There are strict capital controls in place to prevent money from flying out of the country too quickly.
Also, don't confuse it with the Hong Kong Dollar (HKD) or the New Taiwan Dollar (TWD). Those are entirely separate currencies with their own exchange rates and physical notes. If you try to pay for a coffee in Shanghai with Hong Kong Dollars, you're going to have a very thirsty afternoon.
How to handle money when you visit
If you're planning a trip, don't just rely on knowing what is the chinese dollar called. You need to know how to use it.
First, download Alipay or WeChat Pay. You can now link most international Visa or Mastercard accounts to these apps. It’s a game changer. A few years ago, you needed a Chinese bank account to use these, which was a nightmare for tourists. Now, the barrier is much lower.
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Second, notify your bank. Chinese ATMs can be finicky. Look for the "ICBC" or "Bank of China" machines, as they are generally the most reliable for foreign cards.
Finally, keep some physical cash for emergencies, but don't expect to use it for everything. Large 100-Yuan bills are sometimes scrutinized heavily by vendors to check for counterfeits. They'll hold it up to the light, rub the collar of Mao’s jacket (which should feel scratchy/textured), and listen for a specific "snap" of the paper.
Actionable steps for your next transaction
- Check the current rate: Use a reliable converter to see the current CNY to USD (or your local currency) spread. Rates fluctuate, but the Yuan has historically been kept relatively stable by the central bank.
- Get the apps ready: Don't wait until you land in Beijing to set up Alipay. Do it at home so you can verify your identity and link your card while you have a stable internet connection.
- Memorize the lingo: Use "Yuan" for prices, but listen for "Kuai" to understand what the locals are telling you.
- Watch for the symbols: Remember that ¥ is the standard symbol. If you see it on a website and you're not sure if it's Japanese Yen or Chinese Yuan, look for the "CNY" or "JPY" tag nearby.
Understanding the name of China's currency is really about understanding the culture's transition from old-world silver pieces to the cutting edge of digital finance. Whether you call it the Renminbi, the Yuan, or just "kuai," you're participating in one of the most complex financial systems on the planet.