The Chinese name for the Japanese yen is the "ri yuan". Nobel-prize-winning economist Paul Krugman, writing in the New York Times in October , noted that no-one seemed to mind if you talked about the pound's value, but talking about the yuan's value would sometimes draw disapproval. As it happens, Chinese people rarely talk about renminbi or yuan.
The word they use is "kuai", which literally means "piece", and is the word used historically for coins made of silver or copper. Also common is "10 kuai qian", literally "10 pieces of money".
The same thing happens again when you break down your yuan into smaller units, the jiao and the fen one yuan is equal to 10 jiao and one jiao is equal to 10 fen. There is nothing wrong with the word jiao, it is just that most people use the word mao instead.
Anyone suspecting a link between the mao and Chinese former communist leader Mao Zedong would be mistaken. The character is the same as Mao's surname, but the word was used long before he came to prominence. China moves to meet currency vow. China yuan comments buoy markets. Sign Up. Close Menu. Business Account. Learn More. Payment Cards. Advanced FX. Trade Financing. About us. Contact Us. Prev Article. Next Article.
However, in reality, the Renminbi has multiple names for different purposes. As Mainland China is still not completely open to international foreign exchange and capital markets, the two types of Renminbi still remain a reality to this day: CNY is onshore RMB currency traded within Mainland China only.
They do not necessarily trade at the same price against other currencies. We will cover this in more detail at a later stage in this article. This was the first step into internationalizing the Renminbi.
Renminbi: An Overview. Money As a Medium of Exchange. Money as Unit of Account. CNY vs. RMB: Key Differences. China's Currency Controversy. Key Differences. Renminbi: An Overview Chinese currency is a hot topic these days for many reasons. The yuan is the unit of account. The medium of exchange is how a currency is used as money to buy and sell things The unit of exchange is the function of money whereby things are priced in terms of standardized units.
The International Monetary Fund stated that the Chinese currency is no longer undervalued against the dollar given its recent appreciation, however recent devaluations as of may change that outlook. Article Sources. Investopedia requires writers to use primary sources to support their work.
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Numeraire Numeraire is an economic term of French origin, which acts as a benchmark in comparing the value of similar products or financial instruments. What Is a Super Currency? Play Audio.
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