THE CHINESE CURRENCY
Money is always in circulation. Some currencies have very good value like the USD, while others do not. The Chinese currency happens to be one of those with great value and that has increased since the Coronavirus pandemic.
Prior to the paper money used in China now, bronze pieces were used in China as a currency or a means of exchange around the 7th-6th century BC. These bronze pieces were spade-shaped coins. (imagine using that now as a means of exchange). In the 5th-4th century BC, the first round coin was cast in the form of a round disc with a hole in the centre. This holed disc remained relevant until the 20th century.
The first time paper money was introduced in China was around the 9th century. The Chinese paper currency has had a series of revolutions which all tell a story. Currently, the Chinese currency is called Renminbi which means “the peoples currency”. It is also called the Chinese yuan元. Colloquially, the yuán is called kuai (块) and can be indicated with the yuán sign, ¥. The Chinese currency is a reflection of the Chinese people and is highly valued by them.
The Chinese money cannot be forged in any way whatsoever because it has distinct characteristics. The first being the securities line on each banknote printed in light pink or silver, with small lettering written along the edge of it making the letters very hard to replicate. Also, some watermarks appear when the RMB is held to the light, such as a rose and a white denomination (how can one ever replicate that? Thought about the stress?)
Furthermore, the CNY/RMB has the “People’s Bank of China” (中国人民银行) written on it in braille, for the visually-impaired. These areas of the note are more concave and convex. There is a clear resistance when you feel those parts. Fake banknotes can be easily spotted by feeling the banknotes; they will be completely smooth.
Up until 2005, the Yuán was pegged to the US dollar. This means that when the US dollar fluctuated in value against other currencies, either up or down, the value of the yuan would move with it. The Chinese Yuán is no longer pegged and is now allowed to float within a narrow band established by the People’s Bank of China. It is worthy to note that One yuan divides into ten jiao (1元＝10角). A jiao, in turn, divides into ten fēn (1角＝10分).
Informally, yuan (元) is called kuai(块)and jiao(角) is called mao (毛). The Banknotes come in denominations of 1, 5, 10, 20, 50 and 100 (6 denominations), they are all different sizes and colours and have the picture of Mao Zedong.
Who is Mao Zedong you might ask and why does his picture appear on all the Chinese currencies?
Mao Zedong was the founding father of the People’s Republic of China (PRC), which he ruled as the chairman of the Communist Party of China from its establishment in 1949 until he died in 1976. Ideologically a Marxist–Leninist, his theories, military strategies, and political policies are collectively known as Maoism.
In a country which still had high illiteracy in rural areas, it made sense for a universally recognisable image. Various natural landscapes failed the test and it became clear that Mao’s face was perhaps the only one that everyone in China would recognise, making it harder for counterfeiters. From then until now, Mao’s face appears on RMB banknotes.
In conclusion, the Chinese currency keeps increasing in value and there are prospects for the economy of China. Beyond the value of money in its purchasing power, the Chinese consider its value as a reflection of the Chinese people. As the Chinese people (中国人) are known for the preservation of culture and value, little wonder why I was so intrigued while writing this article. There is always a story behind everything in China which intrigues me and I hope it does so to you too.
