Yuan (currency) facts for kids
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The yuan ( YOO-a(h)n; sign: ¥; Chinese: 圓/元; pinyin: yuán;) is a very important word for money in China! It's the basic unit for several types of money used in China, both in the past and today.
Today, when most people talk about the "yuan," they are usually thinking about the main unit of the Renminbi (RMB). The Renminbi is the official money used in mainland China.
Imagine a yuan like a whole pizza. This "pizza" can be divided into smaller slices! One yuan is split into 10 jiao (Chinese: 角; pinyin: jiǎo; literally "corner"), and each jiao is then split into 10 fen (Chinese: 分; pinyin: fēn; literally "small portion"). So, 1 yuan equals 10 jiao, and 1 jiao equals 10 fen. People sometimes use other, more casual names for these units, like kuai (simplified Chinese: 块; traditional Chinese: 塊; pinyin: kuài; literally "lump") for yuan and mao (Chinese: 毛; pinyin: máo; literally "feather") for jiao.
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Understanding the Yuan Today
The word "yuan" is most often used for the main money unit of the renminbi. The Renminbi is the official currency of mainland China. You can find Renminbi banknotes from one yuan all the way up to 100 yuan.
Sometimes, especially when talking about money between different countries, "yuan" is used as another name for the Renminbi itself. For example, the international code for Renminbi is CNY, which stands for "Chinese Yuan."
It's interesting that the symbol for the yuan (元) is also used in Chinese to talk about the money units of other countries. For example, the money in Japan is called yen, and the money in Korea is called won. The Chinese also use "yuan" when they talk about the United States dollar, calling it Meiyuan (Chinese: 美元; pinyin: Měiyuán; literally "American yuan"). The euro is called Ouyuan (simplified Chinese: 欧元; traditional Chinese: 歐元; pinyin: Ōuyuán; literally "European yuan").
The Story of the Yuan: From Old Coins to Modern Money
The word yuan (Chinese: 圓/元; pinyin: yuán) literally means "round" in Chinese. This makes sense because, a long time ago, the yuan was a large, thick, round coin made of silver. These coins were similar to the Mexican silver dollar, which was a very popular coin around the world back then.
Early Chinese Money and the Yuan
Before the yuan became common, people in China used different kinds of money. They used small copper coins and silver pieces called sycees. The yuan was introduced to make money simpler. It was divided into smaller parts: 1,000 cash (Chinese: 文; pinyin: wén), 100 fen (Chinese: 分; pinyin: fēn), and 10 jiao (Chinese: 角; pinyin: jiǎo).
The first yuan coins were made in the Guangdong area in 1889. These included coins for 5 cents, 1, 2, and 5 jiao, and 1 yuan. Soon, other places in China started making similar silver coins. The central government of China began making its own yuan coins in 1903. They made coins from brass, copper, and silver.
Paper money, or banknotes, also started to appear in yuan amounts around the 1890s. Many different banks, including some set up by the government, printed these notes.
Money During Times of Change
China went through many changes in the early 1900s. During these times, different groups and regions sometimes created their own money. For example, in 1917, a powerful leader in Manchuria introduced a new currency called the Fengtien yuan.
After a big change in government in 1911 (the revolution), even more banks started printing paper money. There were national banks and many local banks. Some banknotes were called "National Currency," and others were "Local Currency." They had different values.
New Currencies and Challenges
In the 1930s, during a time when Japan occupied parts of China, new currencies were created in those areas. The existing national yuan became mainly linked to the government of the time. In 1935, the government made changes to control who could print money, limiting it to four main banks. They also stopped people from owning silver coins and introduced new banknotes called fabi (Chinese: 法幣; pinyin: fǎbì), which means "legal tender."
During this period, governments supported by another country also issued their own money. For example, in the north, the Federal Reserve Bank of China (Chinese: 中國聯合準備銀行; pinyin: Zhōngguó liánhé zhǔnbèi yínháng) printed money. Another area, Manchukuo, also had its own yuan from 1932 to 1945.
After World War II, China faced a big problem where money quickly lost its value. This is called hyperinflation. To try and fix this, a new currency called the "gold yuan" was introduced in 1948. However, this new money also quickly lost its value. Even higher value banknotes, like 10,000 yuan and even 5,000,000 yuan, were printed because things were so expensive.
The Yuan Today: Renminbi and New Taiwan Dollar
After a big conflict within China, the People's Liberation Army took control of most of the country. In 1948, they started issuing a new currency, which became the only money used in mainland China.
In 1955, a brand new yuan was introduced. This is the renminbi yuan we know today, and it's the official money of the People's Republic of China.
Meanwhile, on Taiwan, a new currency called the Old Taiwan dollar was introduced in 1946. Later, in 1949, another new currency, the New Taiwan dollar, replaced it. The New Taiwan dollar is still the money used in Taiwan today.
Yuan and the Dollar: A Historical Link
The original silver yuan coins had a similar size and value to the Spanish dollar. The Spanish dollar was a very important coin for trade around the world centuries ago.
Because of this historical connection, sometimes the word "dollar" was even printed on the back of early Chinese yuan banknotes, alongside "yuan." Even today, the money in Taiwan is officially called the "New Taiwan dollar," showing this historical link.
Other Currencies with "Round" Names
The Chinese character for yuan (圓) is also used for the main money unit of the Hong Kong dollar, the Macanese pataca, and the New Taiwan dollar.
Did you know that the names of the money in Korea (the won) and Japan (the yen) are related to the Chinese yuan? They all mean "round" in their own languages! The Japanese yen (en) used to be written with the same Chinese character for yuan (圓) before it was simplified in 1946. The Korean won (won) also used to be written with a similar Chinese character (圜 or 圓) some time after World War II. It is now written only in Hangul, as 원.
Even the Mongolian tögrög (Mongolian: төгрөг) means "round" in the Mongolian language! It's cool how many currencies share this meaning.
See also
- Chinese customs gold unit
- Ancient Chinese coinage
- Digital yuan
- Japanese Yen
Images for kids
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1 yuan, 90% silver, commemorative; President Duan Qirui, minted in 1924
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A 5 Yuan banknote issued by the Central Bank of China in the Republican era.
