| 元 or 圓 or 圆 (in Chinese) | |
|---|---|
 Chinese yuan banknotes issued 1911-modern | |
| Unit | |
| Plural | The language(s) of this currency do(es) not have a morphological plural distinction. |
| Symbol | ¥ |
| Nickname | kuài (块) |
| Denominations | |
| Subunit | |
| 1/10 | jiao (角) |
| 1/100 | fen (分) |
| 1/1000 | wen (文) |
| Nickname | |
| jiao (角) | máo (毛) |
| Demographics | |
| User(s) | China |
The yuan (simplified Chinese: 元 or 圆; traditional Chinese: 圓; pinyin: yuán; lit. 'round (object)') is a unit of currency used in modern China, particularly on the mainland. The Latinised symbol for the yuan is ¥. One yuan is subdivided into 10 jiao (角), 100 fen (分), and 1000 wen (文) although the latter has been out of circulation now due to its small value. Today, the Chinese yuan may be most commonly associated with the renminbi (RMB), the official currency of the People's Republic of China, although the yuan as a base unit is also used to refer to other contemporary currencies circulating in Greater China such as the New Taiwan dollar, Hong Kong dollar, and Macanese pataca. The more common Latinised symbol for the latter 3 currencies is $.
The history of the Chinese yuan can be dated to as far back as 1889 when the Qing Dynasty introduced the currency system at a value on par with the Mexican peso[1] (eight reales silver coin) - the then popular form of medium of exchange in Western trade with the Far East.[2] After the fall of the Qing Empire in 1911, the Chinese yuan continued to be issued by the succeeding Republic of China (ROC) government and from 1949, the People's Republic of China (PRC). During the first half of the 20th century, China was not united politically - there were the central government, autonomous regional warlords, and various political factions. Each of them, in addition to foreign banks operating in China, issued their own independent currencies (all denominated in yuan) which circulated simultaneously throughout the country.[3] Of these numerous issuers, the most prominent ones were the Central Bank of China - central bank of the ROC government, Bank of China, Bank of Communications, Farmers Bank of China, Japanese colonial government and its collaborators, and later the People's Bank of China - central bank of the PRC government. Exhaustive war efforts from the 1930s and poor economic policies also resulted in severe hyperinflation until 1950, leading to the issuance of Chinese yuan banknotes with very large nominal values. Consequently, the currency was redenominated several times.
After the Chinese Civil War, the
Etymology and Characters edit
Yuan in Chinese literally means a "round object" or "round coin". The terminology dates back during the Qing Dynasty, when the yuan was a round silver coin reflecting the Mexican 8 reales coin it was based upon. The character for yuan has two forms — a less formal, 元, and a more formal, 圓 or 圆. The pronunciations are all the same - yuán - and is spoken in one syllable. Many Chinese often use colloquial or slang terms to count their money. For instance, kuai (simplified Chinese: 块; traditional Chinese: 塊; pinyin: kuai; lit. 'piece') is sometimes used instead of yuan. Similarly, the jiao is also known as mao (毛) meaning "feathers". And in Cantonese language, widely spoken in Hong Kong and Macau, jiao and fen can be called ho (毫) and sin (仙) respectively. "Sin" is a Cantonese word that is borrowed from the English "cent".
The same yuan character is also used to refer to the cognate currency units of Korea and Japan. The Japanese yen was originally written in 圓, which was later simplified to 円 with the promulgation of the Tōyō kanji in 1946. The Korean won used to be written 圓 some time after World War II and as 圜 from 1902 to 1910, but is now written as 원 in Hangul script exclusively, in both North and South Korea. Broadly speaking, the yuan is used to translate the currency unit dollar. For example, the US dollar is called Mei yuan (美元) meaning "American yuan" in Chinese.
Imperial Qing era: Yuan from 1889-1911 edit
The yuan was introduced at par with the Mexican peso, a silver coin deriving from the Spanish dollar which circulated widely in South East Asia since the 17th century due to Spanish presence in the region, namely Philippines and Guam. It was subdivided into 1000 cash (文, wén), 100 cents (分, fēn), and 10 jiǎo (角, not given an English name, cf. dime). It replaced copper cash and various silver ingots called sycees. The sycees were denominated in tael. The yuan was valued at 0.72 tael, (or 7 mace and 2 candareens).
Banknotes edit
Banknotes were issued in yuan denominations from the 1890s by several local and private banks, along with the Imperial Bank of China and the "Hu Pu Bank" (later the "Ta-Ch'ing Government Bank"), established by the Imperial government. During the Imperial period, banknotes were issued in denominations of 1, 2 and 5 jiǎo, 1, 2, 5, 10, 50 and 100 yuan, although notes below 1 yuan were uncommon.
Republic of China era edit
Yuan from 1911-1935 - Silver Standard edit
The earliest issues were silver coins produced at the Kwangtung mint. Other regional mints were opened in the 1890s. The central government began issuing its own coins in the yuan currency system in 1903. Banknotes were issued in yuan denominations from the 1890s by several local and private banks, along with banks established by the Imperial government.
After the revolution, a great many local, national and foreign banks issued currency. Although the provincial coinages mostly ended in the 1920s, the provincial banks continued issuing notes until 1949, including Communist issues from 1930. Most of the banknotes issued for use throughout the country bore the words "National Currency", as did some of the provincial banks. The remaining provincial banknotes bore the words "Local Currency". These circulated at varying exchange rates to the national currency issues.
Coins edit
The earliest issues were silver coins produced at the Guangdong (Canton) mint in denominations of 5 cents, 1, 2 and 5 jiǎo and 1 yuan. Other regional mints were opened in the 1890s producing similar silver coins along with copper coins in denominations of 1, 2, 5, 10 and 20 cash.
| Provincial Coinage for the First Yuan | ||
|---|---|---|
| Province | Dates of Coin Production | |
| Start | Finish | |
| Anhui (Anhwei) | 1897 | 1909 |
| Zhejiang (Chekiang) | 1897 | 1924 |
| Hebei (Chihli) | 1896 | 1908 |
| Liaoning (Fengtien) | 1897 | 1929 |
| Fujian (Fukien) | 1896 | 1932 |
| Henan (Honan) | 1905 | 1931 |
| Hunan | 1897 | 1926 |
| Hubei (Hupeh) | 1895 | 1920 |
| Gansu (Kansu) | 1914 | 1928 |
| Jiangnan (Kiangnan) | 1898 | 1911 |
| Jiangxi (Kiangsi) | 1901 | 1912 |
| Jiangsu (Kiangsu) | 1898 | 1906 |
| Jilin (Kirin) | 1899 | 1909 |
| Guangxi (Kwangsi) | 1919 | 1949 |
| Guangdong (Kwangtung) | 1889 | 1929 |
| Guizhou (Kweichow) | 1928 | 1949 |
| Shanxi (Shansi) | 1913 | 1913 |
| Shandong (Shantung) | 1904 | 1906 |
| Shaanxi (Shensi) | 1928 | 1928 |
| Xinjiang (Sinkiang) | 1901 | 1949 |
| Sichuan (Szechuan) | 1898 | 1930 |
| Taiwan | 1893 | 1894 |
| Yunnan | 1906 | 1949 |
The central government began issuing its own coins in the yuan currency system in 1903. These were brass 1 cash, copper 2, 5, 10 and 20 cash, and silver 1, 2 and 5 jiǎo and 1 yuan. After the revolution, although the designs changed, the sizes and metals used in the coinage remained mostly unchanged until the 1930s. From 1936, the central government issued nickel (later cupronickel) 5, 10 and 20 fen and ½ yuan coins. Aluminium 1 and 5 fen pieces were issued in 1940.
Banknotes edit
The number of banks issuing paper money increased after the revolution. Significant national issuers included the "Commercial Bank of China" (the former Imperial Bank), the "Bank of China" (the former Ta-Ch'ing Government Bank), the "Bank of Communications", the "Ningpo Commercial Bank", the "Central Bank of China" and the "Farmers Bank of China". Of these, only the Central Bank of China issued notes beyond 1943. An exceptionally large number of banknotes were issued during the Republican era (1911-1949) by provincial banks (both Nationalist and Communist).
After the revolution, in addition to the denominations already in circulation, "small money" notes proliferated, with 1, 2 and 5 cent denominations appearing. Many notes were issued denominated in English in cash (wén).
In the 1940s, larger denominations of notes appeared due to the high inflation. 500 yuan notes were introduced in 1941, followed by 1000 and 2000 yuan in 1942, 2500 and 5000 yuan in 1945 and 10,000 yuan in 1947.
Yuan from 1935-1948 - Fǎbì Legal Tender edit
During the 1930s, several new currencies came into being in China due to the activities of the invading Japanese. The pre-existing, national currency yuan came to be associated only with the Nationalist, Kuomintang government. In 1935, the Kuomintang Government enacted currency reforms to limit currency issuance to four major government controlled banks: the Bank of China, Central Bank of China, Bank of Communications and later the Farmers Bank of China. The circulation of silver yuan coins was prohibited and private ownership of silver was banned. The banknotes issued in its place were known as 法幣 (Pinyin: fǎbì) or "Legal Tender". A new series of base metal coins began production in 1936 following the reforms.
Customs Gold Unit in 1930 and 1947-1948 edit
Between 1930 and 1948, banknotes were also issued by the Central Bank of China denominated in customs gold units. These circulated as normal currency in the 1940s alongside the yuan.
In the aftermath of the Second World War and during the civil war which followed, Nationalist China suffered from hyperinflation, leading to the introduction of a new currency in 1948, the gold yuan.
Northeastern Provinces Yuan from 1945-1948 edit
After the defeat of Japan in 1945, the Central Bank of China issued a separate currency in the northeast to replace those issued by puppet banks. Termed "東北九省流通券" (pinyin:Dōngběi jiǔ shěng liútōngquàn), it was worth approximately 10 times more than fǎbì circulating elsewhere. It was replaced in 1948 by the Gold Yuan at a rate of 150,000 Northeastern Yuan = 1 Gold Yuan. Along with the Taiwan Dollar, the Northeastern Provinces Yuan was an attempt to isolate certain regions of China from the hyperinflation that plagued the fǎbì currency.
Similar regional currencies issued by the Central Bank of China circulated in Taiwan, and Xinjiang Provinces. A regional currency in Vietnam was also issued by the Central Bank of China during Chinese control of Japanese occupation areas in northern Vietnam in 1945.
Banknotes edit
In 1945, notes were introduced in denominations of 1, 5, 10, 50 and 100 yuan. 500 yuan notes were added in 1946, followed by 1000 and 2000 yuan in 1947 and 5000 and 10,000 yuan in 1948.
Gold Yuan from 1948-1949 edit
Banknotes of the first yuan suffered from hyperinflation following the Second World War and were replaced in August 1948 by notes denominated in gold yuan, worth 3 million old yuan. There was no link between the gold yuan and gold metal or coins and this yuan also suffered from hyperinflation.
Banknotes edit
In 1948, the Central Bank of China issued notes (some dated 1945 and 1946) in denominations of 1, 2 and 5 jiao, 1, 5, 10, 20, 50, and 100 yuan. In 1949, higher denominations of 500, 1000, 5000, 10,000, 50,000, 100,000, 500,000, 1,000,000 and 5,000,000 yuan were issued.
Silver Yuan from 1949-2000 edit
In July 1949, the Nationalist Government introduced the silver yuan, which was initially worth 500 million gold yuan (Silver yuan on Chinese wikipedia). It circulated for a few months on the mainland before the end of the civil war. This silver yuan remained the de jure official currency of the Republic government on Taiwan until 2000.
Banknotes edit
The Central Bank of China issued notes in denominations of 1 and 5 fen, 1, 2 and 5 jiao, 1, 5 and 10 yuan.
Taiwan Dollar from 1946-now edit
The Bank of Taiwan was originally established by the Japanese in 1899 whilst Taiwan was under Japanese administration. The Bank issued Taiwanese Yen which was pegged to the Japanese Yen. After the retrocession of Taiwan to the Republic of China, the new Bank of Taiwan was allowed to continue issuing its own currency. Called "Taiwan Dollar", it replaced the Taiwanese Yen at par. This was an attempt by the Kuomintang to prevent hyperinflation affecting Fǎbì from affecting Taiwan.
However, mismanagement by the Governor-General Chen Yi meant that the Taiwan Dollar also suffered depreciation. It was replaced by the New Taiwan Dollar in 1949 at the rate of 40,000 to 1.
Yuan (Regional Issue) edit
Manchurian (Fengtien) yuan, 1917-1932 edit
In 1917, the warlord in control of Manchuria, Zhang Zuolin, introduced a new currency, known as the Fengtien yuan or dollar, for use in the Three Eastern Provinces. It was valued at 1.2 yuan in the earlier (and still circulating) "small money" banknotes and was initially set equal to the Japanese yen. It maintained its value (at times being worth a little more than the yen) until 1925, when Zhang Zuolin's military involvement in the rest of China lead to an increase in banknote production and a fall in the currency's value. The currency lost most of its value in 1928 as a consequence of the disturbance following Zhang Zuolin's assassination.
Banknotes edit
The Fengtien yuan was only issued in banknote form, with 1, 5 and 10 yuan notes issued in 1917, followed by 50 and 100 yuan notes in 1924. The last notes were issued in 1928.
Communist Yuan from 1930-1949 edit
The various Soviets under the control of China's communists issued coins between 1931 and 1935, and banknotes between 1930 and 1949. Some of the banknotes were denominated in ch'uan, strings of wén coins. The People's Bank was founded in 1948 and began issuing currency that year, but some of the regional banks continued to issue their own notes in to 1949.
Coins edit
Various, mostly crude coins were produced by the Soviets. Some only issued silver 1 yuan coins (Hunan, Hupeh-Honan-Anhwei, Min-Che-Kan, North Shensi and P'ing Chiang) whilst the Hsiang-O-Hsi Soviet only issued copper 1 fen coins and the Wan-Hsi-Pei Soviet issued only copper 50 wén coins. The Chinese Soviet Republic issued copper 1 and 5 fen and silver 2 jiao and 1 yuan coins. The Szechuan-Shensi Soviet issued copper 200 and 500 wén and silver 1 yuan coins.
Banknotes edit
Notes were produced by many different banks. There were two phases of note production. The first, up until 1936, involved banks in a total of seven areas, most of which were organized as Soviets. These were:
| Area | Dates | Denominations |
|---|---|---|
| Chinese Soviet Republic | 1933-1936 | 1, 5 fen, 1, 2, 5 jiao, 1, 2, 3 yuan |
| Hunan-Hubei-Jiangsi | 1931-1933 | 1, 2, 3, 5 jiao, 1 yuan |
| Northwest Anwei | 1932 | 2, 5 jiao, 1, 5 yuan |
| Fujian-Chekiang-Kiangsi | 1932-1934 | 10 wén, 1, 2, 5 jiao, 1, 10 yuan |
| Hubei | 1930-1932 | 1, 2, 10 ch'uan, 1, 2, 5 jiao, 1 yuan |
| P'ing Chiang | 1931 | 1, 2 jiao |
| Sichuan-Shensi | 1932-1933 | 1, 2, 3, 5 and 10 ch'uan |
Production of banknotes by communist forces ceased in 1936 but resumed in 1938 and continued through to the centralization of money production in 1948. A great many regional banks and other entities issued notes. Before 1942, denominations up to 100 yuan were issued. That year, the first notes up to 1000 yuan appeared. Notes up to 5000 yuan appeared in 1943, with 10,000 yuan notes appearing in 1947, 50,000 yuan in 1948 and 100,000 yuan in 1949.
Japanese Occupation era: Yuan from 1937-1945 edit
The Japanese occupiers issued coins and banknotes denominated in li (釐, 1/1000 of a yuan), fen, jiao and yuan. Issuers included a variety of banks, including the Central Reserve Bank of China (for the puppet government in Nanking) and the Federal Reserve Bank of China (for the puppet government in Beijing). The Japanese decreed the exchange rates between the various banks' issues and those of the Nationalists but the banknotes circulated with varying degrees of acceptance among the Chinese population. Between 1932 and 1945, the puppet state of Manchukuo issued its own yuan.
The Japanese established two collaborationist regimes during their occupation in China. In the north, the "Provisional Government of the Republic of China" (中華民國臨時政府) based in Beijing established the Federal Reserve Bank of China (中國聯合準備銀行, pinyin: Zhōngguó liánhé zhǔnbèi yínháng). The FRB issued notes in 1938 at par with Kuomintang yuan. Although initially equivalent, the Japanese banned the use of Nationalist currency in 1939 and set arbitrary exchange rates in favour of the FRB yuan. The FRB yuan was replaced by the Nationalist yuan in 1945 at 1 FRB yuan = 0.2 Nationalist yuan.
The Wang Jingwei government in Nanjing established the collaborationist Reformed Government of the Republic of China (南京維新政府) in 1938. This was later reorganised into the Wang Jingwei Government (南京國民政府) in 1940. They established the Central Reserve Bank of China (中央儲備銀行, pinyin: Zhōngyāng chǔbèi yínháng) which began issuing CRB yuan in 1941. Although initially set at par with the Nationalist yuan, it was also arbitrarily changed to equal 0.18 Japanese Military yen. In 1945, it was also replaced by the Nationalist yuan at 1 CRB yuan = 0.005 Nationalist yuan.
Coins edit
In 1937, the Chi Tung Bank issued copper 5 li and 1 fen, and cupronickel 5 fen and 1 and 2 jiao in East Hebei. The Mengchiang Bank issued cupronickel 5 jiao in northern China in 1938. The Hua Hsing Commercial Bank issued coins (dated 1940) in Shanghai in 1941. These were bronze 1 fen and cupronickel 10 fen. The Federal Reserve Bank issued aluminium 1 and 5 fen and 1 jiao between 1941 and 1943 from Beijing.
Banknotes edit
Five banks, the Central Reserve Bank of China, Federal Reserve Bank of China, Hua Hsing Commercial Bank, Mengchiang Bank and Chi Tung Bank, issued notes for use in the Japanese occupied areas. Denominations included ½, 1 and 5 fen, 1, 2 and 5 jiao, 1, 5, 10, 100, 200, 500, 1000, 5000, 10,000 and 100,000 yuan, with the denominations above 100 yuan only appearing in 1944 and 1945.
People's Republic of China era: Yuan (Renminbi) from 1949-now edit
After the Communists won the Chinese Civil War and established the People's Republic of China (PRC), the People's Bank of China - the central bank of the PRC government - began to issue a new yuan currency system called the renminbi (simplified Chinese: 人民币; traditional Chinese: 人民幣; pinyin: rénmínbì; lit. 'people's currency'). It replaced all the previous yuan currencies issued by the Republic of China government on Mainland China. The stability of the Communist regime finally ended the hyperinflationary period that had beset the previous yuan currencies.
First Renminbi from 1949-1955 edit
The first series of renminbi banknotes was introduced by the People's Bank of China in December 1, 1948, about a year before the Chinese Communist Party's victory in the Chinese Civil War. It was issued only in paper money form and replaced the various currencies circulating in the areas controlled by the communists. One of the first tasks of the new government was to end the hyperinflation that had plagued China in the final years of the Kuomintang (KMT) era.
Banknotes in denominations of 1, 5, 10, 20, 50, 100 and 1000 yuan were introduced. Notes for 200, 500, 5000 and 10000 yuan followed in 1949, with 50,000 yuan notes added in 1950. A total of 62 different designs were issued. The notes were officially withdrawn on various dates between April 1, 1955 to May 10, 1955.
These first renminbi notes were printed with the words "People's Bank of China", "Republic of China" (only in the context to show the issuance year in the Republic of China Era, which was then the officially era in China), and the denomination, written in Chinese characters by Dong Biwu.[4]
The name "renminbi" was first recorded as an official name in June 1949. After work began in 1950 to design the second series of the renminbi, the previous series were retroactively dubbed the "first series of the renminbi".[5]
Second Renminbi from 1955-now edit
[[:Image:Yuan collection.jpg|thumb|200px|Collection of Chinese renminbi yuan banknotes. 1⁄10 yuan to 10 yuan notes are of the fourth series of the renminbi. 20 to 100 yuan (red) are of the fifth series of the renminbi. The polymer note on the lower right commemorates the third millennium.]] The second renminbi was introduced on March 1, 1955 at a rate of 10,000 old yuan to 1 new yuan. During the era of the command economy, the value of the renminbi was set to unrealistic values in exchange with western currency and severe currency exchange rules were put in place. The renminbi is convertible on current accounts but not capital accounts. The ultimate goal has been to make the RMB fully convertible. However, partly in response to the Asian financial crisis in 1998, the PRC has been concerned that the mainland Chinese financial system would not be able to handle the potential rapid cross-border movements of hot money, and as a result, as of 2007, the currency trades within a narrow band specified by the Chinese central government.
Foreign Exchange Certificates from 1979-1994 edit
With the opening of the mainland Chinese economy in 1978, a dual-track currency system was instituted, with renminbi usable only domestically, and with foreigners forced to use foreign exchange certificates. The unrealistic levels at which exchange rates were pegged led to a strong black market in currency transactions.
In the late 1980s and early 1990s, the PRC worked to make the RMB more convertible. Through the use of swap centres, the exchange rate was brought to realistic levels and the dual track currency system was abolished.
See also edit
References edit
- ^ The Global History of Currencies - China Global Financial Data. Retrieved August 11, 2008.
- ^ The Global History of Currencies - Mexico Global Financial Data. Retrieved August 11, 2008.
- ^ Will's Online World Paper Money Gallery - CHINA Worldpapermoney.org. Retrieved August 11, 2008.
- ^ 中国最早的一张人民币
- ^ 中华人民共和国第一套人民币概述
- Krause, Chester L.; Clifford Mishler (1991). Standard Catalog of World Coins: 1801–1991 (18th ed.). Krause Publications. ISBN 0873411501.
- Pick, Albert (1990). Standard Catalog of World Paper Money: Specialized Issues. Colin R. Bruce II and Neil Shafer (editors) (6th ed.). Krause Publications. ISBN 0-87341-149-8.
- Pick, Albert (1994). Standard Catalog of World Paper Money: General Issues. Colin R. Bruce II and Neil Shafer (editors) (7th ed.). Krause Publications. ISBN 0-87341-207-9.
External links edit
- (in Chinese) (in English) SinoBanknote
- How to detect counterfeit Chinese money
- Photographs of all Chinese currency and sound of pronunciation in Chinese
- What is the new Chinese currency regime?
- RMB current exchange rate and historical graphs
- Economist article on Chinese currency valuation
- 'Yuan revaluation the only cure for China's problem', an interview with Michael Pettis, by Venkatesan Vembu, Daily News & Analysis, July 3, 2008.
- Discussion on how the basket peg works
- Chinese Bill Tracking
News edit
- China Severs Its Currency's Link to Dollar, Washington Post, 21 July 2005
- China lifts currency basket lid, BBC, 10 August 2005
- 1, 2 and 5 fen banknotes to be withdrawn, from Xinhua online.
[[Category:Economic history of China]] [[Category:Currencies of Asia]] [[Category:Modern obsolete currencies]] [[Category:Economy of the People's Republic of China]]
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