The Chinese Yuan Renminbi is a standard of currency used in China. It stems from the famous Chinese 'Yuan' currency and means the 'People's Currency' or the 'Currency of the People' and is the standard unit of currency in China today. The Yuan literally means round, which is derived from the round shape of early coins.
The yuan is sub-divided into 10 jiao (which are sometimes locally called 'feathers' or mao). Then one jiao is divided into 10 fen. So it is a standard decimal system.
The history of the yuan is very closely connected to the history of the Communist Republic of China. As the Republic of China began to grow, with more and more land coming under Communist rule, there was a sense of unease within the Communist Party about the use of different types of currency and it was felt that it would be easier to control the people if just one standard of currency were in circulation.
Thus the dawn of the Yuan Renminbi was born. The Government began issuing banknotes that were specifically for use in all of the Communist controlled areas, thereby ensuring that there was a sense of unification in the new Republic. Originally notes were issued with the titles of New Currency or The People's Bank of China, Bank Notes' and other such names, with even the very stark 'People's Bank of China Notes' being issued.
Then in 1949, the People's Currency was issued, under the name Yuan Renminbi and it is still in circulation today.
Often the yuan renminbi is abbreviated or written as the RMB, but it is the same currency. It is displayed as ¥.
The yaun renminbi is obviously used within China and is the official currency. However, despite China's isolation it may also be used in other countries. Both Nepal and Cambodia also allow the RMB to be used and it also can be used to a more limited extent in Vietnam.
In Hong Kong and Macau there is significant use of the RMB. Previously these two territories were under British and Portuguese rule. Hong Kong and Macau were both handed back over to the Chinese (Hong Kong in 1997 and Macau in 1999) and they have a special status in China, retaining a good deal of power and identified as being 'one country with two systems' meaning that they can retain their own currencies. So in Hong Kong, the Hong Kong dollar is still in use and in Macau the pataca is still the official currency.
However, the RMB is also in use and in Hong Kong it is the most common currency after the Hong Kong dollar. It is even possible to have an RMB account with banks in Hong Kong. In Macau it is also widely used, with RMB bank accounts possible, as well as RMB credit cards.
Within China it is important to ensure that you have adequate RMB to get by, since ATMs are not widely available and they are really limited to being available in hotels, airports and some of the larger shopping centres, but away from the major cities you may find it hard to locate an ATM.
So you can either exchange cash or travellers cheques at any branch of the Bank of China, or you can take money out at the airport upon arrival. If you are using a credit card, then bear in mind that you will probably have to pay a much higher rate of interest on cash withdrawals, as well as a fee for taking out RMB.
Traveller's cheques are usually a good and relatively safe way of carrying money. If you lose them or they are stolen you can have them cancelled and then replaced. Usually it is better to take traveller's cheques in the form of dollars, so that you don't lose out by having to pay two sets of exchange fees. The Bank of China is where you should cash your traveller's cheques, since they have very specific agreements with other countries and organisations about how they will sell/cash or compensate for lost traveller's cheques. They will also give you a certificate so you can change back RMB at the end of your stay.
If someone approaches you and is trying to sell you RMB then do not take up their offer. Use a legitimate bank or ATM or even a bureau at your hotel to change money. There is a widespread counterfeiting ring operational in most of the major cities and counterfeit ¥ 50 and ¥ 100 notes are far too common. So what may seem like a bargain can end up being a very costly mistake and for this reason alone, do not exchange money with individuals on the street. In addition to this, to exchange money in this way is actually illegal, so if you are caught then you may find that your time in China becomes something of a nightmare.
You also run the risk of being defrauded. Some travellers relate how they are given a wad of money and as they count it, the person they have exchanged with runs off and is lost in the crowd and there are a few notes on the top of the pile of money but underneath are either bits of plain paper or a few notes of very low denomination.
So no matter how tempting an offer you receive on the street, do not ever be tempted, it really isn't worth it and if you get ripped off, then it can simply ruin your holiday. This also applies if they want to cash a traveller's cheque for you. Use only a proper bank. Remember that banks are closed at the weekend, so always ensure that you have enough cash to keep you going over this period.
Credit cards can be used in some of the shopping centres and in hotels, but you will probably get quite a poor exchange rate and for this reason you are better off paying with cash.
Some shops will accept 'foreign money' such as dollars or Bank of England pounds (note that Irish and Scottish notes cannot be used). These are really only the largest of hotels and you will probably pay over the odds for the goods that you are buying, so it is probably better to keep an emergency supply of dollars or pounds, but only for use in an emergency.
Petty theft in China is not particularly widespread. However, there can be a problem with pickpockets in some of the larger tourist spots, particularly at open-air markets, where people may jostle you or bump into you. For this reason it is usually advisable to wear a money belt.
Whilst you may feel safer in stores and at the airport, you should be aware that many of the security guards at these locations may be very poorly paid and as a result they may collaborate with thieves and 'turn a blind eye' when it comes to tourists being pick pocketed.
Bear in mind that whilst overall China is a safe country, it really has only been recently 'opened up' to foreign travellers and it is a very poor country and some would say a very harsh country. So there are some scams that go on.
Always make sure if you are travelling by taxi that you have RMB in small denominations, such as 10 up to 50 ¥. Otherwise, if you change large notes you may find that the notes given to you in return by the taxi driver are actually counterfeit. Taxis may also be a problem in terms of taking a very long, circuitous route to get somewhere. Unless there are large sums of money involved, it is better to let this one go. It is not unknown for a traveller who complains about the route a taxi driver has taken to end up being held by the police for questioning.
Other scams are also in operation, such as where a young person, who may seem very shy, will approach and ask very politely if they may join the travellers for tea, just to practise and improve their English. When the bill arrives, it then transpires that the price of the tea is exorbitant.
One potentially dangerous scam is where a young woman tries to befriend a single male and suggests that he should come with her to a bar or back to her flat for 'friendship' or perhaps more. The man gets into the car and then is driven with the woman to a secluded spot where robbers are waiting to relieve him of his money.
Thus when visiting any part of China, just be sensible and remember to take some basic precautions. Do not assume that because you are a visitor, the police will take your side. They may themselves be quite suspicious of travellers and their English may be poor.
However, with some basic common sense and not carrying all your money round at once, as well as using traveller's cheques etc, you will find that China is a fantastic place to visit and when in China your Yuan will certainly go a long way.
Almost everything in China is excellent value for money when compared to Western countries, since the prices are so low comparatively. Some of the 'best buys' include jade, Chinese silk and of course the famous Chinese tea. Antiques are also quite a good buy.
As you travel through the different regions of China, you will find that there are different things on offer in different places, with each region reflecting the culture and history of the locality. The difficulty with this is that it is very difficult to go back to places if you are on a very tight schedule, so if you see something that you particularly like and you have room to ship it back home, then it is generally a good rule to simply buy it.
Eating out in China is really very inexpensive, which means that you get excellent value for your RMB, particularly outside the major cities and tourist areas.