What is the 'CNY (China Yuan Renminbi)'

The CNY, otherwise known as the Chinese Yuan Renminbi, is the general term for the currency of the People's Republic of China (PRC).  

BREAKING DOWN 'CNY (China Yuan Renminbi)'

The CNY, or the Chinese Yuan Renminbi, is the term used for the currency of the People's Republic of China (PRC).

The Renminbi and the Yuan, though, are not actually one term together, but two separate terms. Renminbi is the official name of the currency introduced by the Communist People's Republic of China at the time of its founding in 1949. It means "the people's currency." Yuan is the name of a unit of the renminbi currency. So, things cost yuan: 1, 10, 100 yuan, not renminbi. 

It's like "pound sterling" and "pound". Pound sterling is the name of the the British currency, pounds are a denomination of the pound sterling. Things cost pounds, they don't cost pound sterlings, or sterlings. 

CNY, Chinese Yuan Renminbi Specifics 

The renminbi (or yuan) is made up of 10 jiao and 100 fen, and is often either abbreviated as RMB, or represented 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.

There have been several series of renminbi issued since the 1950's, each of which has its own banknotes and coins; exchanges between different series has been allowed at specified exchange rates.

The fifth series of renminbi is 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, allowed to float in a narrow margin around a fixed base rate determined with reference to a basket of world currencies. It was pegged directly to the U.S. dollar until 2005.

In October of 2016, the RMB became the first emerging market currency included in the IMF's special drawing rights basket—a reserve currency used by the IMF. 

RELATED TERMS
  1. Currency Peg

    A currency peg is an exchange rate policy that "pegs" a country's ...
  2. Adjustable Peg

    An adjustable peg is an exchange rate policy where a currency is ...
  3. Cable

    Cable is a term used among forex traders referring to the exchange ...
  4. Currency Band

    A currency band represents the price floor and ceiling that the ...
  5. China Currency Bill

    The China Currency Bill was a potential law passed by the U.S. ...
  6. Key Currency

    A key currency used is money issued by stable, developed country ...
Related Articles
  1. Investing

    Chinese Yuan: A 360 Degree Analysis (CNY)

    The Chinese yuan (Renminbi) is the currency of China, with currency code CNY and currency symbol ¥. In early 2014, the CNY was the seventh most traded currency in the world.
  2. Insights

    Understanding Donald Trump's Stance on China

    Find out why China bothers Donald Trump so much, and why the 2016 Republican presidential candidate argues for a return to protectionist trade policies.
  3. Financial Advisor

    Buying Yuans as a Long-Term Investment: Risks and Rewards

    Examine the current state of the Chinese currency, the renminbi/yuan, and learn whether it is considered a good long-term investment.
  4. Trading

    How Undervalued Is The Yuan?

    Some argue that the large U.S. trade deficits over the past 15 years are primarily due to currency management by U.S. trading partners.
  5. Insights

    Chinese Yuan Internationalization Boosted By Brexit

    Brexit will actually support internationalization of Chines currency, despite having a key offshore trading hub in London. A look at the details of how yuan is set to benefit.
  6. Trading

    The Impact of China Devaluing the Yuan

    The global response to, and fallout from, an event that rocked the investment world in 2015: China devaluating its currency for the first time in 20 years.
  7. Investing

    Will the Yuan Become an International Reserve Currency?

    Although still a matter of when, China is likely to reach a significant milestone when the International Monetary Fund decides to include the Chinese yuan in its special drawing rights basket ...
  8. Investing

    Will South Korea Devalue the Won?

    Learn why the largest countries in Asia are devaluing their currencies. Discover how South Korea may respond and what this means for Asian economies.
  9. Investing

    China Mobile Dips on a Dividend Disappointment

    Shares of China Mobile (NYSE: CHL) fell 3% on Thursday after it failed to follow up its solid year-end report with a meaningful dividend boost. For fiscal 2016, revenue at China's largest telecom ...
  10. Tech

    Is Bitcoin Being Used for Chinese Capital Flight?

    The price of Bitcoin has been tracking the Chinese Yuan recently, leading some to believe that some in China are using the digital currency as a tool for capital flight.
RELATED FAQS
  1. What are key economic factors that can cause currency depreciation in a country?

    Read about the causes of currency devaluation, and find out how to differentiate between relative and absolute currency devaluation. Read Answer >>
  2. How are international exchange rates set?

    Knowing the value of your home currency in relation to different foreign currencies helps investors to analyze investments ... Read Answer >>
  3. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
  4. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
Hot Definitions
  1. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  2. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  3. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  4. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  5. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center