Renminbi is called the currency of the People’s Republic of China, one of the largest economies in the world. According to ISO 4217, the internationally used abbreviation was CNY, whereas RMB is often used in China. Although the renminbi is the official name of the currency, the currency is often referred to simply as the yuan. The publisher is the Chinese People’s Bank. The currency is divided into the units Jiǎo, Fēn and Yuán. Converted one yuan corresponds to 10 ji Jo or 100 fen.
History of the Chinese Currency
After the communists came to power in China, they introduced the renminbi in 1949. In 1994 the People’s Republic of China began to open up economically and in the course of this pegged the renminbi to the key currency of the US dollar. However, the bond was lifted again in 2005.
With the beginning of the global economic crisis in 2008, there was a renewed connection with 6.8 yuan for one dollar. At the beginning of 2012, the renminbi had appreciated approximately 25% against the US dollar compared to 2005 and the median exchange rate was 8.11 yuan to the dollar.
China has by far the world’s largest reserves of foreign currencies from other countries, especially US dollars. This is due to the country’s heavily export-oriented economy. It is therefore not surprising that the call is getting louder worldwide to decouple the severely undervalued Chinese currency again in order to appreciate it.
The favorable valuation of the renminbi gives China an enormous cost advantage over other economic countries. Given the large number of US currencies, an appreciation would inevitably also have a direct impact on the US and its economy.
The renminbi has shown itself to be a very stable currency that has weathered the global economic crisis without devaluing. Looking ahead, one can say that the Chinese renminbi is well on the way to becoming a new world currency.
Exchange money in China or at home?
In contrast to other currencies, exchanging euros for renminbi in Germany is not entirely straightforward. Many small banks do not carry this exotic currency and even the larger banks should inform us in advance by phone and in person.
It is also possible to exchange the money in China. There are banks and exchange offices at the major airports. Often it is even cheaper there than here, as you can exchange at a good rate and without the high fees.