The problems of the dollar, the strange policy of the Fed and the growth of the Chinese economy will sooner or later turn the yuan into an international reserve currency. Scientists are confident that this will happen in this decade.
What is yuan
Yuan (UAH) is the modern currency of the People's Republic of China. In translation, the word "yuan" means "round". It is assumed that this name comes from the shape of the coins. From the point of view of China's economy, this unit measures the value of RMB, or "people's money." The currency has an international designation CNY, according to world standards.
Yuan, as money, appeared in 1835 during the Qing Empire, which ruled the latter. The yuan was issued in the form of a silver coin. The name "Renmenbi" was first recorded in 1949, when the Chinese government withdrew the previous currency from circulation.
Depending on the period, its name in the all-Russian classifier was constantly changing. So, in 1994 the name "Chinese yuan" was recorded, from 2001 to 2007 - "yuan Renminbi", from 2007 to 2009 - "yuan Renminbi", and now it is called simply "yuan".
Features of the currency
In 1955, silver coins replaced aluminum in denominations of 1, 2 and 5 fen. In 1980, they were joined by 1, 2 and 5 jiao brass coins and 1 yuan copper-nickel coins. However, at the moment, bills and coins with the name Feng and Jiao are not used, as they are considered very small. Almost anywhere in China you will not find the price of 9.99 yuan. The Chinese are trying to round up the price to either 9 or 10.
Interestingly, Hong Kong boasts a completely different currency, despite the fact that it is part of China. Therefore, the Hong Kong dollar and patana are legal means of payment in this territory, and the yuan is not used at all. But in the rest of the provinces of China, this currency is not valid.
Until 2005, the exchange rate of the Chinese currency against the US dollar was 8, 2765 yuan, and by April 10, 2008, it was worth only 6, 9920 yuan. Such a low rate was noticed for the first time, but below this mark it did not decline any more.
At the moment, the yuan is moving very slowly into foreign markets. It is believed that it will soon be listed on the Shanghai Stock Exchange, and at this rate, it could become fully convertible in a few years.
The Chinese government in Taiwan believes that the use of the yuan will create a secret economy and undermine sovereignty. However, until China signs a bilateral agreement on the exchange of foreign currency, its full conversion is out of the question.
