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Renminbi

2007 Schools Wikipedia Selection. Related subjects: Currency

   CAPTION: Renminbi
   人民币 (Chinese)


   ¥100 banknote and ¥1 coin
   ¥100 banknote and ¥1 coin
   ISO 4217 Code CNY
   User(s)       Mainland of the People's Republic of China
   Inflation     1.8%
   Source        The World Factbook, 2005 est.
   Pegged with   A basket of currencies
   Subunit
   1/10          jiao (角)
   1/100         fen (分)
   Symbol        ¥
   Nickname      kuài (块)
   jiao (角)      máo (毛)
   Plural        The language(s) of this currency does not have a morphological
                 plural distinction.
   Coins
   Freq. used    1, 5 jiao, ¥1
   Rarely used   1, 2, 5 fen
   Banknotes     ¥1, ¥5, ¥10, ¥20, ¥50, ¥100
   Central bank  People's Bank of China
   Website       www.pbc.gov.cn

   The renminbi ( Simplified Chinese: 人民币; Traditional Chinese: 人民幣;
   pinyin: rénmínbì; literally "people's currency") or the yuan (
   Simplified Chinese: 元 or 圆; Hanyu Pinyin: yuán; Wade-Giles: yüan) is
   the official currency in the mainland of the People's Republic of China
   (PRC). It is issued by the People's Bank of China, the monetary
   authority of the PRC. The official ISO 4217 abbreviation is CNY,
   although also commonly abbreviated as "RMB". The Latinised symbol is ¥.

History

   The renminbi was first issued shortly before the takeover of the
   mainland by the Communists in 1949. One of the first tasks of the new
   communist government was to end the hyperinflation that had plagued
   China near the end of the Kuomintang era. A revaluation occurred in
   1955 at the rate of 1 new yuan =10,000 old yuan.

   During the era of the command economy, the value of the RMB was set to
   unrealistic values in exchange with western currency and severe
   currency exchange rules were put in place. With the opening of the
   mainland Chinese economy in 1978, a dual track currency system was
   instituted, with renminbi usable only domestically, and with foreigners
   forced to use foreign exchange certificates. The unrealistic levels at
   which exchange rates were pegged led to a strong black market in
   currency transactions.

   In the late 1980s and early 1990s, the PRC worked to make the RMB more
   convertible. Through the use of swap centers, the exchange rate was
   brought to realistic levels and the dual track currency system was
   abolished.

   The RMB is convertible on current accounts, but not capital accounts.
   The ultimate goal has been to make the RMB fully convertible. However,
   partly in response to the Asian financial crisis in 1998, the PRC has
   been concerned that the mainland Chinese financial system would not be
   able to handle the potential rapid cross border movements of hot money,
   and as a result, as of 2003, full convertibility remains a distant
   goal.

Yuan and other renminbi units

   The base unit of the renminbi is the yuan. As with Chinese numerals,
   this character has two forms — a common simplified form (元) and a
   formal form (圆/圓) used to prevent alterations and accounting mistakes.

   Yuan is a one syllable word and in Chinese literally means round, after
   the round shape of ancient Chinese coins by the same name. The Korean
   and Japanese currency names, won and yen respectively, are cognates of
   the yuan and have the same Chinese character ( hanja/ kanji)
   representation, but in different forms (respectively, 원/圓 and 円/圓),
   also meaning round in Korean and Japanese. However, they do not share
   the same names for the subdivisions (fen, jiao).

   One yuan is divided into 10 jiao (角), and one jiao is divided into 10
   fen (分). So 3.45 yuan would be spoken of as "3 yuan 4 jiao 5 fen", as
   opposed to "3 yuan 45 fen". In colloquial usage, other names are
   frequently employed; see yuan for details. Yuan is also commonly
   translated into English simply as the "dollar."
   Chinese price sticker (€ 1)
   Enlarge
   Chinese price sticker (€ 1)

   Although shop prices in the PRC are usually marked with 元 after the
   digits, a Y with one (Ұ) or two crossbars (¥) before the numeral digits
   is also common. Some people using an American keyboard may type CN$ out
   of convenience for the ¥ symbol.

   The largest denomination of the renminbi is the 100-yuan note. The
   smallest is the 1-fen coin or note. One of the more interesting things
   to note is that all denominations are available as banknotes. The fen
   notes are now rather insignificant, and the design has not changed
   since 1953. Since sales tax in China are included in the prices, the
   fen and jiao have become increasingly unnecessary as prices increase.
   Chinese retail prices also tend to avoid decimal values (such as
   $9.98), opting instead for integer values of yuan (such as ¥9 or ¥10).

RMB series

   The denomination of each banknote is given in Chinese. The numbers
   themselves are given in financial Chinese numeral characters, as well
   as Arabic numerals. The denomination and the words 'China People's
   Bank' are also given in Mongol, Tibetan, Uyghur and Zhuang on the back
   of each banknote. On the front of the note is also the representation
   of the denomination in Chinese Braille starting from the fourth series.

   The use of coins varies from places to places. For example, coins are
   more often used for values less or equal to ¥1 in Shanghai, but
   banknotes of the lower value are more often used than coins in Beijing.

First series

   The first series of Renminbi banknotes was introduced during the
   Chinese Civil War by the newly-founded People's Bank of China on
   December 1, 1948, nearly one year before the founding of the People's
   Republic of China itself. It was ceased on May 10, 1955. It was issued
   to unify and replace the various currencies of the communist-held
   territories as well as the currency of the Nationalist government.

   Due to the turbulent political situation at the time, the first series
   is rather chaotic, with many versions issued for each denomination. The
   banknotes show a mixture of agricultural and industrial scenes, modes
   of transportation, and famous sites.

   The notes were issued in twelve denominations: ¥1, ¥5, ¥10, ¥20, ¥50,
   ¥100, ¥200, ¥500, ¥1,000, ¥5,000, ¥10,000 and ¥50,000, with a total of
   62 designs.

              CAPTION: Images of Reminbi First Series Banknotes

                    Front design: a worker and a peasant
Main color of Front: blue and pink
Back design: decorative pattern
Main colour of Back: light coffee
Size: 133 mm * 54 mm

                  Image:1949ChineseYuanFirst-1Yun-Front.gif
       Image:1949ChineseYuanFirst-1Yun-Back.gif Front design: factory
Main color of Front: light blue and reddish blue
Back design: decorative ball
Main colour of Back: pale purple
Size: 116 mm * 56 mm

Second series

   The second series of Renminbi banknotes was introduced on March 1,
   1955. Together with the introduction of the second series, the decimal
   point was moved 4 places to the right. As a result, one first series
   ¥10,000 note is equivalent to one second series ¥1 note.

   Each note has the words "People's Bank of China" as well as the
   denomination in the Uyghur, Tibetan, Mongol and Zhuang languages on the
   back, which has since appeared in each series of Renminbi notes.

   The denominations available were (withdrawn date):
     * ¥0.01, ¥0.02, ¥0.05,
     * ¥0.1(15/12/1967),
     * ¥0.2(11/1953),
     * ¥0.5(1/1/1999),
     * ¥1 red(20/10/1969) blue(issued:25/3/1961, withdrawn 15/8/1973) ,
     * ¥2(12/1976), ¥3(15/5/1964),
     * ¥5 red(15/5/1964) blue(issued period:20/4/1962-1/12/1983) and
     * ¥10(issued period:1/12/1957-15/4/1964).

   The ¥3, ¥5 and ¥10 notes were printed in the Soviet Union. As a result
   of the Sino-Soviet split, the use of them was halted in 1964 to be
   withdrawn.

   Since 1999, only the three ¥0.01, ¥0.02, and ¥0.05 banknotes continue
   to be legal tender. The sizes of these three notes are very small
   compared to other banknotes.

Third series

   The third series of Renminbi banknotes was introduced on April 15,
   1962. For the next two decades, the second and third series banknotes
   were used concurrently.

   The denominations available with either of these catalog number(issued
   date-withdrawn date) added:
     * ¥0.1 3|1(20/4/1962-20/11/1971), 3|2(31/10/1966-12/1067)
       3|3-6(15/12/1967),
     * ¥0.2 (15/4/1964),
     * ¥0.5 (5/1/1974),
     * ¥1 (20/10/1969),
     * ¥2 (15/4/1964),
     * ¥5 (20/10/1969),
     * ¥10 (10/1/1966).

   The third series was phased out over the 1990s and recalled completely
   on the 1/7/2000, this date is valid for all of the denominations with
   only one date provided.

Fourth series

   The fourth series was introduced between 1987 and 1992, although the
   banknotes were dated 1980, 1990, or 1996. Unlike the third series, they
   are still legal tender. Banknotes are available in (issue date):
     * ¥0.1(22/9/1988),
     * ¥0.2 (10/5/1988),
     * ¥0.5 (27/4/1987),
     * ¥1 (10/5/1988),
     * ¥2 (10/5/1988),
     * ¥5 (22/9/1988),
     * ¥10 (22/9/1988),
     * ¥50' (27/4/1987), and
     * ¥100 (10/5/1988), .

   and newly deisgned coins of ¥0.1, ¥0.5, and ¥1.

   All of the banknotes feature geographical features of China on the
   reverse side. On the obverse side, banknotes less or equal to ¥10
   feature different ethnicities of China; the ¥50 note features an
   intellectual, a farmer, and an industrial worker, a typical communist
   theme; while the ¥100 note features four people important to the
   founding the People's Republic of China: Mao Zedong, Zhou Enlai, Liu
   Shaoqi, and Zhu De.

   Coins carry the Emblem of the People's Republic of China, the full
   title of the state in Chinese and pinyin on the obverse side, and the
   denomination and an image of a flower on the reverse side.

Fifth series

   In 1999, a new series of renminbi banknotes and coins were
   progressively introduced.

First (1999) edition

   Coins of the first edition replaces all 3 values from the previous
   series, namely ¥0.1, ¥0.5, and ¥1. It should be noted that the Emblem
   of the People's Republic of China of the previous series has been
   removed and the title of the state has been replaced " People's Bank of
   China". 1 jiao (¥0.1) also shrunk in size.

   The first edition includes the following banknotes
   Banknote
   5th Series, First (1999) Edition
   Link (Chinese) Value Dimensions Colour Obverse Reverse Printed Date
   Issued Date Watermark
   ¥1 ^130 x 63 mm Yellow Mao Zedong and Orchid Three Pools Mirroring the
   Moon at West Lake 1999 July 30, 2004 Orchid
   ¥5 135 x 63 mm Purple Mao Zedong and Narcissus Mount Tai November 18,
   2002 Narcissus
   ¥10 140 x 70 mm Blue Mao Zedong and Rose Three Gorges of the Yangtze
   River September 1, 2001 Rose
   ¥20 (new value) 145 x 70 mm Brown Mao Zedong and Lotus Scenery of
   Guilin October 16, 2000 Lotus
   ¥50 150 x 70 mm Green Mao Zedong and Chrysanthemum Potala Palace
   September 1, 2001 Mao Zedong
   ¥100 155 x 77 mm Red Mao Zedong and Peony? Great Hall of the People
   October 1, 1999

   Note:
     * ↑  The ¥1 note, introduced on July 30, 2004, can also be argued as
       a member of the second edition because it shares similar new
       security features that are introduced in the banknotes of the
       second (2005) edition.

   The new banknotes incorporate several measures to foil counterfeiting,
   including watermarks and inks that fluoresce under ultraviolet light.
   All but the ¥1 banknote have a metallic strip, and the ¥50 and ¥100
   banknotes also feature numbers which change colour when viewed from
   different angles. The portrayals of different nationalities of China,
   represented by a couple in ethnic dress on the front of previous
   banknotes, have also been uniformly replaced with the image of Mao
   Zedong.

Second (2005) edition

   The 2005 edition was introduced since August 31, 2005 with the
   following banknotes and coin affected:
     * banknotes: ¥100, ¥50, ¥20, ¥10, and ¥5
     * coins: ¥0.1

   There is no difference in the basic colour and design between the
   banknotes of the 1999 and 2005 edition. However, new security
   (anti-counterfeit) features are added in the 2005 edition that
   distinguishes the two. The differences as compared to the 1999 edition
   are
     * Dated 2005
     * The currency number at the bottom of the reverse is added with
       “YUAN” indicating the pinyin of “dollar”(圓) in Chinese language.
     * Added EURion constellation to avoid computer-aided counterfeit
     * Removal of fibre threads
     * Removal of the second serial number on ¥50 and ¥100
     * More raised ink printing (on the right side of obverse)
     * Move of registration

   The material of the new ¥0.1 coin ( image) is stainless steel,
   switching from duralumin, a kind of metal alloy.

   Banknotes of the second (2005) edition include
   Banknote
   5th Series, Second (2005) Edition
   Link (Chinese) Value Dimensions Colour Obverse Reverse Printed Date
   Issued Date Watermark
   ¥5 135 x 63 mm Purple Mao Zedong and Narcissus Mount Tai 2005 August
   31, 2005 Narcissus
   ¥10 140 x 70 mm Blue Mao Zedong and Rose Three Gorges of the Yangtze
   River Rose
   ¥20 145 x 70 mm Brown Mao Zedong and Lotus Scenery of Guilin Lotus
   ¥50 150 x 70 mm Green Mao Zedong and Chrysanthemum Potala Palace Mao
   Zedong
   ¥100 155 x 77 mm Red Mao Zedong and Peony Bauhinia ? Great Hall of the
   People

Possible future design

   On March 13, 2006, BBC reported that some delegates to an advisory body
   at the National People's Congress proposed to include Sun Yat-sen and
   Deng Xiaoping on the Renminbi banknotes. However the proposal is a long
   way from becoming law.

Exchange rate

   Mainland China's currency, which for the previous decade had been
   tightly pegged at 8.28 renminbi to the U.S. dollar, was revalued on
   July 21, 2005 to 8.11 per U.S. dollar, following the removal of the peg
   to the US dollar and pressure from the United States. The People's Bank
   of China also announced that the renminbi would be pegged to a basket
   of foreign currencies, rather than being strictly tied to the U.S.
   dollar, and would trade within a narrow 0.3% band against this basket
   of currencies. The PRC has stated that the basket is dominated by the
   U.S. dollar, Euro, Japanese yen and South Korean won, with a smaller
   proportion made up of the British pound, Thai baht, Russian ruble,
   Australian dollar, Canadian dollar and Singapore dollar.

Purchasing power

   The World Bank's World Development Indicators 2005 estimates that one
   United States dollar is equivalent to approximately 1.8 Renminbi by
   purchasing power parity in 2003.

   Current CNY exchange rates
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   Retrieved from " http://en.wikipedia.org/wiki/Renminbi"
   This reference article is mainly selected from the English Wikipedia
   with only minor checks and changes (see www.wikipedia.org for details
   of authors and sources) and is available under the GNU Free
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