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Questions about Renminbi

Short answers, pulled from the story.

When was the renminbi first introduced and by whom?

The renminbi was introduced by the People's Bank of China in December 1948, about a year before the establishment of the People's Republic of China. It replaced various currencies circulating in Communist-controlled territories and was issued initially in paper form only.

What is the difference between renminbi and yuan?

Renminbi is the name of the currency, while yuan is the name of its primary unit, analogous to the distinction between "sterling" and "pound" for the British currency. One yuan divides into 10 jiao, and each jiao into 10 fen. In everyday Mandarin, speakers typically use kuai for yuan and mao for jiao.

When did the renminbi join the IMF special drawing rights basket?

The renminbi joined the IMF's special drawing rights basket on the 1st of October 2016, becoming the first emerging market currency to be included. Its initial weighting in the basket was 10.9%, alongside the US dollar, euro, sterling, and yen.

How does the offshore renminbi CNH differ from the onshore CNY?

CNY is used only in mainland China, is controlled by the People's Bank of China, and operates on a fixed daily exchange rate. CNH is the designation for renminbi traded outside the mainland, is not subject to the same restrictions, and has its exchange rate determined by market forces.

What is the digital renminbi and when did pilot programs begin?

The digital renminbi, also called DCEP or e-CNY, is a central bank digital currency developed by the People's Bank of China. Pilot programs began in 2020 in cities including Shenzhen, Suzhou, and Chengdu, and by 2023 it had been integrated into public transportation, government subsidies, retail payments, and cross-border trials.

What share of global foreign exchange reserves does the renminbi hold compared to the US dollar?

As of the first quarter of 2020, the renminbi's share of global foreign exchange reserves rose to a record high of 2.02%. The US dollar's share as a reserve currency remains above 60%.