Local Currency

Currency in China

The official currency of China is the renminbi (abbreviated form RMB) and its base unit is the yuan. In 2005 the yuan was floated and has been slowly strengthening in value as compared to the US dollar. The subdivisions of the yuan are the jiao, at 10 jiao to the yuan, and the fen at 10 fen to the jiao. Most Chinese currency will be in the form of bills more often than coins; however bills are usually preferred in the North of China whereas coins are more accepted in the South.

Counterfeiting is a major problem so when you buy currency make sure you examine all bills carefully. It is not impolite to refuse bills and ask for them to be changed, but the safest way to avoid problems is to carry out all money exchanges at the Bank of China.

It is nearly impossible to obtain RMB outside of China. When buying money within China it is recommended to use foreign bank cards, currency or traveller’s cheques. Keep all receipts so you are able to convert your RMB back to your original currency when you leave the country. ATMs are common in China and to find their locations you can visit www.mastercard.com/cardholderservices/atm . Most ATMs will charge a small network fee and before leaving you should find out from your bank if they charge a currency conversion fee.

Traveller’s cheques are great if you are travelling to large cities as they protect your money against theft or loss. You shouldn’t have any problem cashing them at banks and tourist hotels but be careful in budget hotels and restaurants as you may have a problem. Credit cards are not commonly accepted in China outside of hotels and high-class restaurants, cash is the preferred medium.

Mostly the prices of goods are inclusive of Value-added Tax and any sales tax but there is always room for bargaining. If you are buying something that is not from a fixed price store, bargaining is very common and accepted.