RMB is an abbreviation for Renminbi, which refers to the official currency of the People's Republic of China. The term "RMB" literally translates to "people's currency."
RMB is commonly used within China and is not only the legal tender within the country, but also has gained significant international recognition in recent years. It is issued by the People's Bank of China, which is the central bank of the country.
The currency is comprised of banknotes and coins, with denominations including 1, 5, 10, 20, 50, and 100 yuan. The yuan is the basic unit of RMB, with 1 yuan comprising of 10 jiao or 100 fen. However, jiao and fen are rarely used due to their low value.
The RMB is managed through a tightly controlled exchange rate regime by the Chinese government. Although it has been pegged to the US Dollar in the past, China has moved towards a more flexible exchange rate system, allowing the value of the RMB to fluctuate to some extent. This has aimed to promote international acceptance and use of the currency.
Given China's rise as an economic powerhouse, the RMB has gained importance in global trade and finance. It is increasingly being used as a preferred currency for international transactions, and its inclusion in the Special Drawing Rights (SDR) basket of the International Monetary Fund (IMF) further solidified its position in the global financial system.
Overall, the RMB is a widely recognized currency within China and has gained significant international prominence, symbolizing the economic power and influence of the People's Republic of China.
