National currency implies money which is emitted by a state central bank or any other state monetary institution. Chinese currency is becoming popular and a more powerful international currency day by day. The most debatable question in international economics has been owed to the policy of artificial undervaluation of Chinese money contra the United States dollar; insofar that China has been gaining an export price advantage up to 2015. During that period, Chinese currency received appreciation of its rising position in the world by the International Monetary Fund.
Before 2010, since being under strict government control, the Chinese renminbi was never considered to be an international currency. But now Standard Chartered Bank forecasts that 28% of international trade from China will be realized in RMB by 2020.Differences between yuan and renminbi
Other than the process of currency internationalization, modern China's system has two interchangeable terms for national currency they are: “renminbi” and “yuan” and, as such,the hkd currency
, two abbreviated currency codes are used: “RMB” and “CNY”. Will it turn to account the yuan or the renminbi, or split the use of one or another for international and internal market participants?
As we have denoted earlier, the renminbi and the yuan's are interchangeable when talking about Chinese currency, and are very often confused. Here we are trying to specify the difference between them to clear up this misunderstanding.
The renminbi is regarded the official currency of China. In international conversion it is marked as CNY (or CNH in the Hong Kong territories) and by the symbol ¥, but the abbreviation RMB is also commonly used.
The yuan is the unit notion for renminbi transactions but also applies to the currency in general. Thus, any person may pay for his coffee in café with a 10 yuan bank-note and receive change in yuan and jiao. So both these banknotes are classed as renminbi.
It is a similar situation with the pound sterling in Great Britain where this term is referred to the British currency but the price is stated only in pounds and pound is a value of the pound sterling; the same can be seen in USA – where the price is expressed in dollars and not in Federal Reserve notes.