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Guilherme Mazui

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What is the Difference Between Yuan and Renminbi?

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The terms "yuan" and "renminbi" are often used interchangeably to refer to the Chinese currency, but they have distinct meanings:

  • Renminbi (RMB): This is the official name for the currency of China, translating to "people's money". It was first introduced in 1948 by the Chinese Communist Party, which established the People's Bank of China. Renminbi is equivalent to "Pound Sterling" or "US Dollar" in the sense that it is the name of the overall currency.
  • Yuan: The yuan is the principal unit of account for the renminbi. It is similar to the "pound" in Pound Sterling or the "dollar" in US Dollar. A unit of renminbi is a yuan, and yuan is often used in everyday transactions and conversations.

In summary, renminbi is the official name for the currency of China, while yuan is the unit of account for that currency. There are 10 jiao in a yuan, and 10 fen in a jiao. The distinction between the two terms is subtle, and they are often used interchangeably in day-to-day conversation.

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  • What is the Difference Between Yuan and Renminbi?
  • Comparative Table: Yuan vs Renminbi

    • Comparative Table: Yuan vs Renminbi

    The difference between Yuan and Renminbi is subtle, but it is essential to understand the distinction. Here is a table summarizing the differences:

    Feature Yuan Renminbi
    Unit of Account Yuan is the principal unit of account for the Chinese currency. Renminbi is the official currency of China.
    Denomination Yuan is divided into 10 jiao and 1 jiao is further divided into 10 fen. Renminbi is the overall currency, with banknotes printed in various denominations, including 1, 2, 5, 10, 20, 50, and 100 yuan, as well as 1, 2, and 5 jiao.
    Abbreviation Yuan is abbreviated as CNY (or CNH in Hong Kong). Renminbi is abbreviated as RMB.
    Usage The term "yuan" is used in Mandarin translations of foreign currencies, such as the U.S. dollar, which is translated as "mei yuan". The term "renminbi" translates to "people's money" and is used to refer to the currency itself.

    In summary, while the renminbi is the official currency of China, the yuan is the principal unit of account for that currency. The terms "yuan" and "renminbi" are often used interchangeably, but they have distinct meanings.

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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.