Yuan vs Renminbi Currencies
Often people get confused when talking about the Yuan and Renminbi currencies. There is no specific difference between the Chinese currencies, Yuan and Renminbi, as the two are often interchanged. In actual terms, there is no difference between the two. They are the same, and they are related to each other.
Renminbi refers to the whole money system prevailing in China. Renminbi, which is otherwise called as the ‘people’s money’, is the official currency of China. Yuan is the base unit of Renminbi, and Yuan is linked to Renminbi in the same way as the dollar is to USD. Chinese people often like to refer to their currency as Yuan, just like the Americans call the dollar a ‘buck’.
Well, Renminbi can be said to be the unit of currency, and Yuan can be refered to as the unit of account. Yuan can be refered to as the main unit of Renminbi currency. Renminbi is the name of the China’s currency, whereas Yuan can be termed as the denomination of the bills.
With regards to the etymology, Renminbi means ‘people’s money’ in the native Chinese language, and Yuan means ’round object’.
Yuan was the first national currency to be introduced. It was first introduced in 1889. The Yuan currency remained as the national currency for a long period, until 1949. When the communists took over the control of the country, they introduced Renminbi, a new national currency in place of Yuan. Renminbi became the national currency of China in 1949.
The China Banknote Printing and Minting is credited with the production of Renminbi currencies. The first series of Renminbi notes was introduced in 1948. After this, the second series was introduced in 1955, the third series in 1962, fourth series in 1987 and the fifth series in 1999.
Summary
1. In actual terms, there is no difference between the two. They are the same, and are related to each other.
2. Renminbi, which is otherwise refered to as ‘people’s money’, is the official currency of China.
3. Yuan is considered the base unit of Renminbi. It is linked to Renminbi, just as the dollar is to USD.
4. Renminbi is the unit of currency, and Yuan can be refered to as the unit of account.
5. Yuan was first introduced in 1889, and remained as the national currency until 1949.
6. Renminbi became the national currency of China in 1949.