What Currency Is CNY?

CNY is the Chinese Yuan, the official currency of China. Learn how it works, how it differs from CNH, and how to manage it for travel or trade.

What currency is CNY?

If you’ve seen prices or transactions listed in CNY, especially when dealing with suppliers, online platforms, or travel bookings in China, you may be wondering what it means. This guide is designed for importers, global investors, international travellers, and anyone handling cross-border payments. We’ll explain what CNY stands for, where it’s used, and how to manage it effectively.

CNY: Chinese Yuan Renminbi

CNY is the official ISO 4217 currency code for the Chinese Yuan, which is the unit of account of the Renminbi (RMB)—China’s official currency.

  • Currency code: CNY

  • Symbol: ¥ (also written as 元 or 圆 in Chinese)

  • Full name: Renminbi (meaning “People’s Currency”)

  • Unit: Yuan (元)

  • Subunits: 1 yuan = 10 jiao = 100 fen

The terms CNY, Yuan, and Renminbi are often used interchangeably, but strictly speaking:

  • Renminbi is the name of the currency (like “sterling” in GBP).

  • Yuan is the unit of that currency (like “pound” in GBP).

  • CNY is the international currency code, used in exchange rates, banking, and finance.

Where is CNY used?

CNY is used throughout the People’s Republic of China, including all mainland provinces, autonomous regions, and major cities like Beijing, Shanghai, Shenzhen, and Guangzhou. It is the only legal tender accepted for daily transactions in China.

In Hong Kong and Macau, separate currencies are used—the Hong Kong Dollar (HKD) and Macanese Pataca (MOP)—although CNY is accepted informally in some areas.

China’s currency is not freely convertible, and its use is largely restricted to domestic transactions or tightly regulated international trade.

How the Chinese Yuan (CNY) works

China operates a managed float exchange rate system. This means the People’s Bank of China (PBOC) sets a daily reference rate and allows the currency to fluctuate within a defined band. The yuan is partially pegged to a basket of currencies but heavily influenced by the US dollar.

As of 2024, exchange rates typically range around:

  • ¥7.0 to ¥7.3 per US Dollar

  • ¥8.5 to ¥9.0 per British Pound

The Chinese government tightly controls cross-border flows of the currency to manage its economy and protect against volatility.

CNY vs CNH: What's the difference?

You may also come across CNH, which refers to the offshore version of the Chinese yuan.

  • CNY = Onshore yuan, used within mainland China, controlled by the PBOC

  • CNH = Offshore yuan, traded internationally (e.g. in Hong Kong, Singapore, London)

Both represent the same currency, but CNH is subject to market forces and may trade at a slightly different rate from CNY.

Benefits and considerations of using CNY

Benefits:

  • Stable domestic use: Widely accepted and reliable for domestic trade and transactions in China.

  • Growing international role: China is pushing for greater global use of the yuan through trade agreements and central bank swaps.

  • Expanding digital payment systems: Alipay, WeChat Pay, and the Digital Yuan are driving cashless innovation.

Considerations:

  • Capital controls: Foreign exchange is heavily regulated—there are limits on how much CNY can be taken in or out of the country.

  • Not freely convertible: Investors and businesses face restrictions when converting or repatriating large sums.

  • Limited acceptance abroad: CNY is not a global reserve currency (yet) and is rarely accepted outside of China.

Tips for managing CNY

  • Use Chinese ATMs to withdraw cash while in China—foreign cards are accepted at major banks like ICBC, Bank of China, or China Construction Bank.

  • Carry cash or download WeChat/Alipay for everyday transactions—many shops, taxis, and restaurants are digital-only.

  • Avoid exchanging large sums outside China, where rates may be poor and access is limited.

  • For businesses, consider holding a CNH account to make trade payments more efficient and compliant.

FAQs

Is CNY the same as RMB?
Yes, but with a distinction. RMB (Renminbi) is the currency name, while CNY is the currency code used in finance and forex.

Can I use CNY outside China?
Very rarely. While some neighbouring regions accept it informally, CNY is not widely accepted internationally.

Is CNY stable?
Yes. It is carefully managed by the PBOC to minimise volatility and maintain China’s export competitiveness.

Can I convert CNY freely?
No. China has capital controls in place, so large conversions or cross-border transfers often require approval.

Real-life example

A UK business orders £10,000 worth of electronics from a Chinese supplier. The invoice is priced in CNY. The buyer contacts their bank to make an international transfer and converts GBP into CNY using the day’s rate. The funds are then sent to the supplier’s Chinese bank account in onshore yuan (CNY). Had the transaction been processed in Hong Kong, it may have been settled in CNH instead.