China's currency has two names - Renminbi (RMB) and Yuan. 'Renminbi' translates to 'people's currency,' while 'yuan' refers to its primary unit. Although these terms are used interchangeably, they serve different purposes. Understanding such distinctions can help travellers handle currency exchanges, daily transactions, and pricing more effectively.
If you plan to visit China, this guide will help you understand Chinese yuan currency, exchange money, and save on expenses.
List of currency notes in China
Chinese currency comprises various denominations of banknotes and coins. Here's an overview of Chinese yuan denominations:
- Banknotes: Chinese yuan comes in denominations of ¥0.1 (10 fen), ¥0.5 (5 jiao), ¥1, ¥5, ¥10, ¥20, ¥50 and ¥100. Higher value notes, such as ¥50 and ¥100, are commonly used for major transactions. Smaller denominations, such as food, transportation, and small retail items, are handy for everyday purchases.
- Coins: In China, coins are available in denominations of ¥0.01 (1 fen), ¥0.05 (5 fen), ¥0.1 (1 jiao), ¥0.5 (5 jiao), and ¥1. These coins are commonly used for small transactions like paying for public transportation, street food or small retail purchases.
Using Indian currency
Indian rupees (INR) are not accepted for direct transactions in China. Travellers from India should convert their INR to Chinese yuan (CNY). Here are some ways to change Indian currency in China:
- Currency exchange at banks: Major Indian banks like SBI or HDFC offer foreign exchange services. You can exchange INR to CNY in China at major banks like the Bank of China and ICBC.
- Currency exchange at airports: Currency exchange counters are available at international airports in China. However, they might offer less favourable exchange rates.
- ATMs: International ATMs in China allow withdrawals in yuan using Indian debit or credit cards.
- Prepaid travel cards: These travel cards can be loaded with INR and used to withdraw CNY at ATMs or make direct payments. They offer competitive exchange rates and enhanced security.
Methods of payment in China
Here are some of the modes of payment in China:
- Digital payments: Platforms like Alipay and WeChat Pay are widely accepted for payments. You can use them everywhere, from street vendors to upscale malls.
- Credit and debit cards: Major international cards (Visa, MasterCard) are accepted in hotels, restaurants, and larger retail stores. However, smaller establishments might prefer cash or digital payment methods.
- Cash: While digital payments are prevalent, money remains an essential mode of payment in rural areas or smaller towns.
Tips to save money when travelling in China
Travelling in China can be economical with these strategies:
- Use public transportation: Cities like Beijing and Shanghai have extensive and affordable metro systems. Buses are also a cost-effective option.
- Dine like a local: Eating at local eateries or street food stalls offers authentic cuisine at lower prices compared to tourist-centric restaurants.
- Bargain at markets: In local markets, bargaining is common and can help in significant savings. Always be polite and reasonable in negotiations.
FAQs
- Is it necessary to carry cash in China?
While major cities rely on digital payment methods, you must carry cash for ease of transaction. If visiting rural areas or small vendors, cash transactions are preferred.
- Can I use an Indian credit/debit card in China?
Yes, but make sure your card is enabled for international transactions
- Are currency exchange services available at Chinese airports?
Yes, but they might offer less favourable rates compared to banks or ATMs.
- Can I buy a local SIM in China to use mobile payment apps?
You can purchase a local SIM card to access mobile payment apps like Alipay and WeChat Pay.
Conclusion
When you understand the currency in China and its payment system, you can have a better travel experience. Traditional and modern payment methods ensure you are prepared for any situation. Before travelling, investing in travel insurance for China is also important. Good travel insurance will cover medical emergencies, lost luggage, and unexpected trip cancellations. You can easily compare and buy travel insurance online, which saves time and ensures you get the best coverage for your trip.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.