What Currency to use in China?

When planning a trip to China, one of the most important things to consider is how to handle your money. China is a country that has rapidly adopted digital payments, yet cash is still used, especially in more remote areas. Knowing which currency is accepted and understanding the best way to manage your finances can make your trip smoother and more enjoyable. In this guide, we’ll explore the currency used in China, the different modes of payment available, and how to exchange money.

What Currency is Used in China?

The official currency of China is the Renminbi, which is abbreviated as RMB, and interpreted as "the people's currency." The base unit of the Renminbi is the yuan, denoted by the symbol CNY, and is frequently shortened to the “¥". One yuan consists of 10 jiao and 100 fen. To further facilitate transactions, paper money is usually printed in denominations of 1, 5, 10, 20, 50, and 100 yuan. Although less common in use, coins are issued in denominations of 1 yuan, 1 jiao, and 5 jiao, among others.

If you are curious, “What currency does China use?,” then, it is quite simple - the Chinese yuan is the official currency accepted in all places in China. You will often encounter the term RMB as synonymous with yuan, but it refers to the same thing. For tourists, it is very important to know that only the Chinese yuan is used as a mode of transaction and foreign currencies are not accepted.

Modes of Payment in China

China has become a highly digitized nation, especially when it comes to payments. Although cash is still a part of the system, most people, especially those living in cities, like making their payments electronically. The most common forms of payment in China are:

• Mobile Payment Apps: The most popular mobile payment apps that can be seen in China include WeChat Pay and Alipay.  These applications become linked to a bank account and allow users to pay for anything from street food to luxurious jewelry. In fact, many small shops and local vendors prefer these over cash. The good news for international travelers is that these apps now permit foreign visitors to link their international bank cards, allowing easy payment through one's phone while traveling.

• Credit/Debit Cards: Major cities and tourism attractions accept international cards such as Visa, MasterCard, and UnionPay. In smaller towns, you might find it harder to use these cards; UnionPay is more easily found than the others, though. It's always a good idea to have some local money or set up mobile payments for when these are not accepted.

• Cash: Despite the growing use of digital payments, carrying cash is still suggested, especially when traveling outside of big cities or visiting traditional markets. Cash transactions are mostly preferred in small towns; therefore, the yuan is an inevitable cash currency. Most tourists like using cash even in small shops that sell snacks or small souvenirs. You can withdraw Chinese yuan at any ATM using your international debit/credit card.

How to Convert Money in China

When you want to convert your money into the Chinese currency, you have several options:

1. ATMs:

The easiest way to get cash in China is certainly through ATMs. You can find ATMs almost everywhere, especially in major cities and tourist destinations. Most international debit or credit cards can be accessed from ATMs, but you may be charged some transaction fees. Some ATMs may charge you a small fee (usually around 2-3%) for foreign cards, but the exchange rate is generally favorable. Avoid using non-bank ATMs to reduce the risk of receiving counterfeit currency.

2. Currency Exchange Counters:

If you want to exchange your home currency for yuan before you leave, you may visit your local bank. However, it is advisable to order Chinese yuan in advance, as many banks outside of China do not keep a large amount of foreign money. You can also exchange money at the airport, but be aware that airport exchange counters often provide high exchange rates. Hotels and currency exchange offices near tourist attractions provide convenience but frequently demand higher fees.

3. Local Banks in China:

Local banks in China are the cheapest and most reliable option to change money. The Bank of China or ICBC will give you the best exchange rates with no extra charges, but it will use up much of your time. You have to queue up, and in more remote areas, the languages spoken there might prevent you from getting what you want. 

4. Money Exchange Apps and Services:

Some people prefer to use money transfer apps or forex cards where you load the currency into a card or online account and use that to purchase the local currency. That can be more convenient, although do compare your exchange rates and fees across the provider, for a small difference, which can add up quickly.

Converting Indian Rupees into Chinese Currency

In general, INR to CNY is a simple conversion if you're coming from India, but you can change your INR to CNY at any of your home banks before leaving for China or convert it to China. Most international Indian airports have facilities for currency exchange, but you'll get better rates with Chinese ATMs. Of course, the rates keep fluctuating, so it's a good idea to check out the rates before large conversions.

While major metropolitan cities like Beijing and Shanghai have currency exchange counters or ATMs that support INR, it’s wise to carry some USDs or EURs as well. These are widely used for exchange purposes in many countries of the world and, of course, in China.

Conclusion

Understanding the currency and payment systems is imperative while traveling to China. The official currency of China is known as the Renminbi or simply called the Chinese yuan. Although cash is still commonly used, it appears that China is heading at a rapid speed toward a cashless society. Proper preparation is important- having set up mobile payment apps, carrying small amounts of cash for emergencies, and knowing where to exchange money for the best rates. When planning your trip to China, whether by credit card or with the use of WeChat, a plan can help ensure the experience is financially stress-free.