Chinese Currency and Exchange Guide

Chinese Currency: Renminbi (RMB)

The official currency of China is the Renminbi (RMB), which means "People's Currency." Its unit is the Yuan (¥) (e.g., 100 Yuan is written as ¥100). Subunits are Jiao and Fen (1 Yuan = 10 Jiao = 100 Fen).

Currently circulating banknotes include ¥1, ¥5, ¥10, ¥20, ¥50, and ¥100 denominations. Coins include ¥1, ¥0.5, ¥0.1, among others.

Regulations on Bringing Cash into China

· Bringing RMB Cash into China: The amount of RMB cash each foreign national can bring into China must not exceed ¥20,000.

· Bringing Foreign Currency Cash into China: You can bring in foreign currency worth up to $5,000 USD equivalent without declaration. If the amount exceeds the equivalent of $5,000 USD, you must make a written declaration to Customs.

Where to Exchange Foreign Currency for RMB

You can exchange foreign currency for RMB at the following locations. It is recommended to use official channels like banks.

· Airports: Major international airports usually have bank branches or 24-hour self-service exchange machines supporting various currencies, which is very convenient. For example, the Bank of China offers 24/7 foreign exchange services at Pudong Airport.

· Bank Branches: Major banks like Bank of China (BOC), Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), and China Construction Bank (CCB) mostly offer foreign exchange services. Many Bank of China branches in Shanghai, for instance, offer exchange services for 33 foreign currencies and provide small-denomination RMB "change wallets."

· Hotels & Licensed Exchange Counters: Some large international hotel front desks or licensed foreign exchange offices in shopping malls also provide exchange services.

Exchange Tips:

· You must present your valid passport to exchange currency.

· Exchange rates fluctuate daily; you can compare rates slightly before exchanging.

· Banks usually charge a service fee; ask about this before proceeding.

· Be sure to keep the bank's exchange memo. With this memo and your passport, you can convert any unused RMB back to foreign currency before departing China (the memo is typically valid for 6 months).

Payment Methods in China

China has a highly developed mobile payment ecosystem, but efforts are also made to ensure smooth operation of cash and other payment methods.

1. Cash Payment

Despite the popularity of mobile payments, cash remains legal tender in China and cannot be refused as payment anywhere. It is particularly useful for small transactions, traditional wet markets, some taxis, or when traveling in smaller cities. It's advisable to carry some small bills for contingencies.

2. Bank Card Payment

· International Bank Cards: International credit cards with logos like Visa, Mastercard, American Express, JCB can be used directly at many merchants in China displaying these logos, especially upscale hotels, large department stores, and well-known restaurants.

· Local Chinese Bank Cards: If you plan to stay in China long-term, consider opening an account at a local bank (e.g., Bank of China, ICBC) and getting a UnionPay debit card. UnionPay cards are accepted almost everywhere that takes cards in China.

3. Mobile Payment (Very Common)

Mobile payments are extremely convenient in China. Foreigners can also use them by:

· Linking an International Bank Card: Apps like Alipay and WeChat Pay allow you to link international credit cards (like Visa, Mastercard) for QR code payments. Please note that there might be single transaction and annual cumulative transaction limits (currently, the single transaction limit is $5,000 USD, and the annual cumulative limit is $50,000 USD).

· "TourCard": You can apply for a prepaid "TourCard" on the UnionPay App, top it up, and use it for online and offline payments.

· Users of Certain Overseas E-Wallets: Travelers from some countries and regions (e.g., parts of Southeast Asia) can sometimes directly use their home country's e-wallet for payments in China without downloading additional apps.

4. Digital RMB (e-CNY)

China is piloting the Digital Yuan (e-CNY). Foreigners can download the "e-CNY (Pilot Version) App" and use it as guided. It functions like digital cash and is currently usable in some pilot cities.

Opening a Bank Account

If you are living, working, or studying in China long-term, opening a local bank account will be very convenient. You will typically need:

· Valid Passport

· Valid Visa

· Temporary Residence Registration Form (issued by the local police station or your hotel)

· Sometimes additional documents like an enrollment letter or employment contract may be required.

Having a local account makes managing funds, online payments, and transfers easier.

Important Reminders

· Foreign Currency is Not Legal Tender in China: You cannot use foreign currency directly for payments; all transactions must be settled in Renminbi (RMB).

· Never Exchange Currency Privately: Private foreign exchange transactions are illegal in China. Always exchange money through legal channels like banks.

· Keep Your Exchange Memo: Safeguard your exchange memo; it is essential for converting unused RMB back to foreign currency.

· Use a Combination of Methods: Do not rely on a single payment method. It's best to combine cash, bank cards, and mobile payments, and have an international credit card as a backup.

Practical Advice After Arrival

1. Exchange a Moderate Amount Initially: Upon arrival, you can exchange a small amount of RMB (e.g., ¥500-1000) at the airport for initial expenses like transport to the city. You can often get a better exchange rate at bank branches in the city later.

2. Get Small Bills: When exchanging, try to get some smaller denomination notes (¥10, ¥20) for public transport or small purchases.

3. Download Apps: If you want to use mobile payments, download Alipay or WeChat (and WeChat Pay) in advance or after arrival and try linking your international credit card.

4. Carry Your Passport: Your passport is your primary ID in China and will be required for currency exchange, hotel check-in, buying SIM cards, and many other situations.

Finally, enjoy your trip to China! If you encounter payment issues, seek help from bank staff or your hotel front desk.