When people think of Chinese currency, the first word that usually comes to mind is "yuan." However, the landscape of money in China is more nuanced than a single term suggests. Understanding what Chinese money is called requires looking at the official unit, the informal nicknames, and the historical context that shaped the language around finance. This exploration moves beyond the surface to define the exact terms used in daily life, business, and culture.
The Official Currency: Renminbi and Yuan
The official currency of the People’s Republic of China is the Renminbi (RMB). While "Renminbi" is the formal name, similar to how "Pound Sterling" is the formal name for British money, the unit of account is the yuan. In everyday conversation and financial transactions, the term "yuan" is used interchangeably with Renminbi. The symbol for the yuan is ¥, and the international currency code is CNY. One yuan is divided into ten jiao, and one jiao is divided into ten fen, though fen coins are rarely seen in modern commerce.
Yuan vs. Renminbi: What’s the Difference?
The distinction between yuan and Renminbi is subtle but important for precision. Think of Renminbi as the overarching currency system, like "British Pound," while yuan is the specific unit, like "pound sterling." When checking the exchange rate, you are looking at the value of the yuan. When discussing the currency as a whole, including coins and banknotes, Renminbi is the correct term. In practice, however, locals will almost always refer to it as "kuai" in casual settings.
Colloquial Terms: Kuai and Ma
In daily Chinese life, the word "yuan" is often replaced by "kuai." This slang term is ubiquitous in markets, restaurants, and shops. If a meal costs 100 yuan, a local will tell you it costs 100 kuai. The origin of "kuai" is believed to come from the term for a lump of silver used in old transactions. Another interesting piece of financial slang is "ma," which means "fake." If someone warns you that a bill is "ma," they are alerting you to a counterfeit note.
Digital Payments: The Real Dominance
To understand modern Chinese money, one must address the dominance of digital wallets. While cash is still used, platforms like Alipay and WeChat Pay have essentially created a virtual yuan ecosystem. These apps allow users to store digital "yuan" in their accounts and transfer money instantly via QR codes. For tourists, this means that physical cash is less necessary than in many other countries, but it is still wise to have small denominations for older establishments or rural areas.
Historical Context and Foreign Exchange
The history of Chinese currency is long and complex, which influences the vocabulary used today. Before the Renminbi, China used various forms of cash, including copper coins and silver sycees. During the Republican era, different banks issued their own notes, leading to confusion. When the People’s Republic was founded in 1949, the RMB was introduced to unify the economy. This history is why the term "yuan" remains the standard in foreign exchange markets and international trade, even if locals use "kuai."
Common Mistakes for Travelers
Travelers often make the mistake of asking for "Chinese dollars," which causes confusion since China has its own distinct currency. It is also common to hear the term "Chinese yuan" in news broadcasts, which is technically correct but less common in vernacular Chinese. When bargaining in a market, avoid using the word "yuan" if you want to sound more fluent; using "kuai" immediately signals that you have some understanding of the local language, even if your numbers are wrong.
