When you first start dealing with money in China, it can feel a little confusing. You’ll see the currency referred to as RMB, CNY, and you’ll hear people calling it “kuai” and “mao.” Are these all different things? Why so many names for one country’s currency?
Don’t worry, it’s much simpler than it sounds. Let’s break down what each term means and when to use it.
The Official Name: Renminbi (RMB)
First, let’s start with the official name of the currency. The money of the People’s Republic of China is called the Renminbi (人民币), which literally translates to “the people’s currency.”
- RMB is the abbreviation for Renminbi.
- Usage: You will often see “RMB” used in writing, especially within China, to denote prices. For example, a price tag might say “50 RMB.” Think of “Renminbi” as the equivalent of “Sterling” for the British Pound. It’s the official name of the currency system.
The International Code: CNY
Every currency in the world has a three-letter international standard code (ISO 4217, to be exact). The code for China’s currency is CNY.
- CNY stands for CHiNese Yuan.
- Usage: You will almost always see “CNY” used in international contexts, like at a currency exchange counter at the airport or when booking flights and hotels online. It’s the official code used in global finance. So, while RMB and CNY refer to the same money, you’ll see them used in different places.
The Unit of Account: Yuan (元)
This is where it gets a little more detailed. While the currency is called Renminbi, the basic unit of that currency is the Yuan (元).
This is just like how in the United Kingdom, the currency is “Sterling,” but the unit is the “Pound.” Or in the United States, the currency is the “US Dollar,” and the unit is the “Dollar.”
- Usage: The Yuan is the primary unit. A 100 Yuan banknote is the largest denomination. You will see the character 元 on all banknotes.
The Spoken, Everyday Words: Kuai (块) and Mao (毛)
This is the most important part for a traveler. In everyday spoken language, you will almost never hear anyone say “Yuan.” Instead, you will hear “kuai” and “mao.”
- Kuai (块): This is the colloquial, everyday word for Yuan. It literally means “piece,” and it’s like how Americans say “bucks” instead of “dollars.” If a taxi ride costs 25 Yuan, the driver will say “èr shí wǔ kuài” (二十五块). If you want to sound like a local, you should use “kuai” when talking about prices.
- Mao (毛): A “mao” is one-tenth of a kuai. It’s the equivalent of a dime in the US. So, if something costs 2.5 kuai, someone might say “liǎng kuài wǔ” (两块五), which means “two kuai and five mao.”
- Jiao (角): “Jiao” is the official written term for one-tenth of a Yuan. You will see the character 角 on the back of the smaller banknotes and coins. However, in spoken language, “mao” is used almost exclusively.
Let’s Summarize:
- Renminbi (RMB): The official name of the currency system. (Like “Sterling”)
- CNY: The official international currency code. (Like “GBP” for Great British Pounds)
- Yuan (元): The official name of the main unit of currency. (Like “Pound”)
- Kuai (块): The informal, everyday word for Yuan. This is what you will actually say and hear. (Like “Quid” or “Bucks”)
- Jiao (角) / Mao (毛): One-tenth of a kuai/yuan. Jiao is the formal term, but Mao is what everyone says. (Like “Dime”)
So, when you see a price tag that says 50 RMB, you can hand over a 50 Yuan banknote, and when you talk about it, you’d say it costs 50 kuai.
It seems complicated at first, but after a day or two in China, it will feel completely natural. Happy travels from Panda Trip!
