MCQ Detailed View

The Yuan is the official currency of China. More formally, it is called the **Renminbi (RMB)**, which translates to "the people’s currency." The Yuan is the basic unit of the Renminbi. In global financial markets, it is identified by the currency code CNY.

China introduced the Renminbi in 1948 shortly before the founding of the People’s Republic of China. The Peoples Bank of China (PBoC), the central bank, is responsible for issuing and regulating the currency. Over the decades, the Yuan has become one of the most important currencies in the world, reflecting China rapid economic growth and rising influence in global trade and finance.

Today, the Chinese Yuan is widely used not only within China but also for international trade, especially in Asia, Africa, and increasingly in Europe. As China promotes the internationalization of the Yuan, it has also been included in the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) basket of currencies, alongside the U.S. Dollar, Euro, Japanese Yen, and British Pound.

Key facts about the Chinese Yuan:

• Official name: Renminbi (RMB)


• Basic unit: Yuan (¥)


• Currency code: CNY


• Issued by: People’s Bank of China (PBoC)


• First issued: 1948


• Global role: Included in IMF’s SDR basket


• Importance: Used widely in international trade and global reserves

China’s economic power, massive export market, and global infrastructure projects—such as the Belt and Road Initiative—have increased the demand and visibility of the Yuan globally. Many central banks now hold Yuan as part of their foreign exchange reserves. As China continues to open up its financial markets, the Yuan is expected to play an even larger role in global commerce in the coming decades.