China is a country advancing rapaciously across the trading world. Still communist, it sports a capitalist economy. With the largest population on the globe, China is an economic force to be reckoned with. It still has political issues upsetting the world and its markets. The problems of Tibet got a second wind with China hosting the Olympic Games in 2008.The coin of the land is the Yuan or the Yuan Renminbi. Trading under the symbol CNY, the yuan consists of 10 jiao or mao.
History
China is among the very first nations to have a currency. In the 6th century B.C., China began to mint their own coinage. Unlike Turkey and many other nations, China chose to mould and not die-cast their currency. The early coins based their shape and value of the first forms of money: cloth, bronze tools and the cowry shell. As a result, in north China, the first currency consisted of miniature hoes. Other countries imitated this and minted hoe-shaped, knife-shaped and cowrie-shaped coins.
In the mid-3rd century B.C., round coins began to appear. Based on weight, these coins featured a central hole. In 221 B.C., the bronze coins began to supplant the hoe, knife and cowrie coins. This coinage remained the staple – one design and one denomination until 1912. This is not to say there were not variations or even backtracking in Chinese money systems. Under Wang Mang in AD 7 – 23, the reformed coinage shapes again reflected the knife and hoe shapes. The major change was the focus on decimal divisions and not weight. He devised round coins in denominations of 1, 10, 20, 30, 40 and 50, hoe shapes in from 100 to 1,000 and knife shapes in 500 and 5000. Later, only hoes and rounds remained. His successor, Han, overthrew both him and his system, returning it to the traditional weight-based currency.
There were other changes and modifications during the successive years. From 907-960, 10 kingdoms existed. Most had their own currency. The Song Dynasty (960-1279) introduced paper money. The Mongols and Tartars, meanwhile, used few coins.With the arrival of the Ming Dynasty, provincial mints began to produce coins in the traditional form. They soon abandoned coins. The preference was for paper money. This trend continued until 1503. Change resulted, in part, from the influx of foreign money in the port cities.
Under the Qing Dynasty (1644-1911), a network of mints began to produce standard coins for China. There were also foreign dollars and western-style coins. In southern China, during the mid-19th century, the only reliable currency was foreign. From 1851 to 1864, tokens and paper money also prevailed in some parts of the country, while the members of the Taiping Rebellion had their own coinage: brass coins featuring 6 Chinese characters.By the 1870s, American, Japanese and Hong Kong currency circulated in China. In the 1890s, it was Qing Dragon coins. There were imported silver dollars and French and British money. This all was to change with the 1912 Republic. The overthrow of the Qing Dynasty ended cast coins except in the rural areas. The new government implemented a policy of standardization across China. The central formed in 1936 and further reforms to the currency followed.
Major monetary reforms took place in 1955. Coinage, vanished during WW II, except in Taiwan, reappeared as part of government policy. The yuan underwent evaluation with 1 new yuan equaling 10,000 old yuan. Fen and jiao coins joined paper money from 1955. Designs began to change. While the fen and jiao continue to exist, preference is always for the yuan.
Today, there are the rare, but still acceptable notes of 1, 2, and 5 fen. There are also 1, 2 and 5 jiao (mao) as well as 1, 2, 5, 10, 20, 50 and 100 yuan notes. The coins consist of 1, 2 & 5 jiao; 1 fen and 1 yuan.
Obtaining Chinese Yuan Renminbi
It is not difficult to obtain Chinese currency. In fact, it is illegal to use foreign currency. You can exchange money at main branches of the Bank of the China. It is also possible to exchange currency at tourist hotels, some department stores and Friendship Stores. If you do not mind a higher or official rate, you can use the services of your hotel.You can also get money from ATMs. The number of locations of ATMs is steadily growing. You can find most in the larger cities. The Olympic Games is responsible for further technological advances outside the major cities in this direction.
Protecting Your Currency
If you wish to protect your currency in China, follow the usual safety precautions. Such petty crime as pickpocketing, theft of mobile phones and laptops as purse snatching is possible. This is especially true of certain areas. Tourist areas in Shanghai and the Bund, Yu Gardens and the bar region of Hengshan Roads are common areas for such crimes. The same thing applies to the tourist areas of other cities. Watch your possessions and money when you are in trade fairs, restaurants, internet cafés, department stores, coffee shops and department stores.
Using Your Chinese Yuan Renminbi
In China, the most common currency is the yuan. You will rarely use the fen. The exception is for purchasing things at a supermarket. Many places accept Yuan, Hong Kong Dollars and other major currencies. It is always better, however, to have a supply of yuan for local purchases. This is particularly true if you are shopping in local markets or visiting smaller centers. Out in the rural areas, cash and specifically cash in the smaller bills are more readily accepted than foreign currency. Do not be surprised if some merchants check your yuan bills. There is a problem with counterfeiting. This is particularly true of the 50 and 100 yuan. Some merchants will not accept it.
Travel Tips and Warnings
- There are certain regions in China where violence can spring up suddenly. These include Tibet.
- One of the problem cities is Shenzhen and its surrounding region.
- There is a possibility of banditry occurring on the borders.
- China does have earthquakes. This may prevent you from proceeding to certain outlaying areas.
- Realize you may not be able to wander as freely as you hope.
- China is an enormous country. Do no think you will be able to see it all in a day or week.
- If need be, pare down your visit to the following sights: the Great Wall, Xi’an with its famous terra cotta warriors, the Nightlife of Shanghai, the Shanghai Museum and the Three Gorges.
- Follow the Silk Road.
- Visit the Tibet, “The Roof of the World.”
- Go to Kashgar, an oasis town in the desert.
Overview
China is a growing economic power. It has the largest population in the world. Their hosting of the Olympic Games revealed both their strengths and their weaknesses. China basked in the media light, but many of the countries flaws also came into the open.
Currency Summary
Current currency: yuen renminibi
1 yuan equals 10 jiao or mao.
Coins: 1, 2 & 5 jiao; 1 fen and 1 yuan.
Banknotes: 1 fen (rare), 2 fen (rare) and 5 fen (very rare); 1, 2 and 5 jiao
1, 2, 5, 10, 20, 50 and 100 yuan.