What is the 'CNY (China Yuan Renminbi)'
The currency abbreviation for the China yuan renminbi (CNY), the general term for the currency of the People's Republic of China (PRC). The renminbi (or yuan) is made up of 10 jiao and 100 fen and is often either abbreviated as RMB, or presented with the symbol ¥. Renminbi is issued by the People's Bank of China, which is controlled by the PRC. The yuan is issued in banknote (bills) multiples of one, five, 10, 20, 50 and 100.
BREAKING DOWN 'CNY (China Yuan Renminbi)'
The Chinese definition of renminbi is "people's currency". There have been several series of renminbi issued since the 1950s, each of which has its own banknotes and coins; exchanges between different series was allowed at specified exchange rates.
The fourth series of renminbi is still legal tender today, with the prior series having been phased out. It is not a free-floating currency system; it is managed (by the PRC) through a floating exchange rate. Previously, it was pegged directly to the U.S. dollar.
The renminbi (and its management by the People's Bank) figures to play an important role in the global economy during the 21st Century, as China is the most populous nation in the world and is just beginning to solidify its economic infrastructure.