Yuan

The yuan, formally the renminbi (RMB) and denoted by the ISO code CNY, is the official currency of China. It is issued and managed by the People's Bank of China, the country's central bank, which sets a daily reference rate against which the currency is allowed to trade within a managed band. The yuan is not fully free-floating, reflecting Beijing's tightly controlled capital account and its preference for gradual, managed liberalisation. A separate, more freely traded offshore version, known as CNH, circulates in financial centres such as Hong Kong. The currency's basic unit is the yuan, informally called the kuai, subdivided into jiao and fen. As China has grown into the world's second-largest economy and a dominant trading nation, the yuan's international role has expanded, including its inclusion in the International Monetary Fund's Special Drawing Rights basket. It features prominently in commodities trading, particularly through yuan-denominated contracts on exchanges such as the Shanghai Gold Exchange and Shanghai Futures Exchange, which compete with established benchmarks like the London Metal Exchange. Chinese authorities have periodically intervened to manage the yuan's value amid trade tensions and capital flow pressures. Its gradual internationalisation is viewed as part of a broader strategy to reduce reliance on the dollar in global trade and finance. The currency was introduced in 1948 by the People's Bank of China ahead of the founding of the People's Republic.