Commonly we call it Yuan, but the official name of the Chinese currency is Renminbi which is translated to English as: “the people’s currency”. In reality, the Yuan is the basic unit of the Renminbi.
Widely used in its abbreviation RMB, the Renminbi entered into circulation on December 1, 1948. The People’s Bank of China is the institution responsible for the administration of the currency’s circulation and keeping the exchange rate balanced.
Since the reform and opening-up, China has developed after decades of rapid economic growth, into the biggest world exporter and the second largest world economy after the United States, overtaking Japan.
The internationalization of the Renminbi is very impressive. In only two years the Renminbi has become one of the five most used currencies in the world. It’s importance can be shown by the possible addition to the International Monetary Fund’s (IMF) basket of currencies which currently includes the U.S. dollar, the Euro, the British Pound and the Japanese Yen.
Every five years the Executive Director of the IMF examines options to widen the currency basket. If the Chinese currency is accepted at the end of 2015, the Reminbi will be known as a fundamental agent and necessary in the international financial balance.