Renminbi, the Chinese currency, is issued by the state bank, the People's Bank of China. The standard unit of the Renminbi is yuan, with jiao and fen as subsidiary units. Thus one yuan equals ten jiao and one jiao equals ten fen. Yuan, jiao and fen are issued both in paper money and coins. Renminbi features the following denominations: one, two, five, ten, twenty, fifty and a hundred yuan; one, two, and five jiao; and one, two and five fen. The abbreviation for Renminbi is RMB￥.

 

Foreign Currency Conversion

 

Conversion services are available in China for the following foreign currencies:

 

US Dollar, British Pound Sterling, French Franc, Deutsche Mark, Japanese Yen, Australian Dollar, Austrian Schilling, Belgian Franc, Canadian Dollar, Hong Kong Dollar, Swiss Franc, Danish Krone, Guilder (or Florin), Norwegian Krone, Swedish Krone, Singapore Dollar, Malaysian Ringgit, Italian Lira, Macao Pataca, and Finnish Markka.

 

Banks conduct the conversion of the above-mentioned foreign currencies into Renminbi or vice versa. This constitutes conversion services in China.

 

China's law governing foreign exchange bans the circulation of foreign currencies and the settling of accounts with foreign currencies in the People's Republic of China. For the convenience of foreigners and compatriots from Hong Kong, Macao and Taiwan traveling in the mainland of China, the Bank of China and other designated Chinese banks conduct the conversion into Renminbi of foreign traveler's cheques and credit cards as well as the conversion of twenty-two foreign currencies and the New Taiwan Dollar in cash. Again for the convenience of travelers in China, some hotels, restaurants and stores in China also conduct the conversion of foreign cash into Renminbi. A foreign traveler may have the remaining amount of Renminbi converted back into foreign cash and brought out of China within a grace period of six months prior to departure from China, but in doing so he has to display a foreign currency conversion receipt. Different conversion rates are applied under different circumstances. Buying prices are applied for the conversion of traveler's cheques, credit cards and remittances; selling prices are applied for the conversion of Renminbi into foreign currencies (cash included); and buying prices are used for the conversion of foreign cash into Renminbi.

 

Credit Cards Acceptable in China:

 

So far the following foreign credit cards are acceptable in China:

 

1) Master Card;

 

2) Visa Card;

 

3) American Express Card;

 

4) JCB Card;

 

5) Diners Card.

 

Foreign Exchange Regulations for "Foreign Visitors"

 

Article 17 of the Regulations on Foreign Exchange Control of the People's Republic of China stipulates: "Foreign exchange sent or carried in by foreign establishments and foreign nationals in China can be held at their own discretion, deposited  in designated banks or sold to the designated foreign exchange banks. Such  foreign exchange can also be remitted or taken abroad upon the presentation of valid documents."

 

The Regulations also include the following:

 

1) Foreign exchange sent or carried in by foreign establishments and foreign nationals in China can be held at their own discretion, deposited in designated banks or sold to the designated foreign exchange banks on a voluntary basis. Such foreign exchange can also be remitted or taken abroad upon the presentation of valid documents.

 

2) All the expenses incurred by foreign establishments and foreign nationals in China should be paid in Renminbi. The remaining amount of Renminbi converted from foreign exchange can be converted back into foreign currency and brought or remitted abroad upon the presentation of one's passport and the memo within a six-month grace period.

 

3) Foreign establishments and foreign nationals in China are not allowed to engage in unauthorized trading of foreign exchange in China.

 

According to China's current foreign exchange control regulations, the conversion (or transaction) between foreign exchange and Renminbi can take place only at a bank empowered to conduct foreign exchange businesses, or at the China Foreign Exchange Trade Centre and the system attached to it. All transactions between foreign exchange and Renminbi conducted through channels other than these two are unauthorized behaviors no matter at what exchange rate such transactions have been made. Such unauthorized behaviors are illegal and banned by Chinese law because they disturb the country's financial order. According to Article 45 of the Regulations on Foreign Exchange Control of the People's Republic of China, to penalize unauthorized trading, the exchange administration agencies shall serve a warning, impose the conversion of foreign exchange, confiscate the unlawful income from such transactions, and place a penalty fine in the range of more than 30 percent of and less than 3 times the amount of the foreign exchange in question.