Editing Renminbi (section)

==Economics==
===Value===
{{See also|Renminbi currency value}}
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{{Most traded currencies}}
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[[File:USD rate to CNY from 1981 to 2019.svg|thumb|300px|1 US dollar to renminbi, since 1981]]

For most of its early history, the renminbi was [[Fixed exchange-rate system|pegged]] to the U.S. dollar at ¥2.46 per dollar. During the 1970s, it was revalued until it reached ¥1.50 per dollar in 1980. When China's economy gradually opened in the 1980s, the renminbi was devalued in order to improve the competitiveness of Chinese exports. Thus, the official exchange rate increased from ¥1.50 in 1980 to ¥8.62 by 1994 (the lowest rate on record). Improving current account balance during the latter half of the 1990s enabled the Chinese government to maintain a peg of ¥8.27 per US$1 from 1997 to 2005.

The renminbi reached a record high exchange value of ¥6.0395 to the US dollar on 14 January 2014.<ref>{{cite web|url=http://www.binarytribune.com/day-trading-academy/chinese-yuan-currency-profile-part-ii|work=Binary Tribune|title=Profile of China's Yuan – Characteristics and Economic Indicators|access-date=21 December 2014|archive-date=2 November 2019|archive-url=https://web.archive.org/web/20191102205855/http://www.binarytribune.com/day-trading-academy/chinese-yuan-currency-profile-part-ii|url-status=live}}</ref> Chinese leadership have been raising the yuan to tame inflation, a step U.S. officials have pushed for years to lower the massive trade deficit with China.<ref>Yahoo Finance, [https://finance.yahoo.com/news/Dollar-extends-slide-on-views-apf-3112272241.html?x=0&sec=topStories&pos=7&asset=&ccode= Dollar extends slide on views of low US rates] {{Webarchive|url=https://web.archive.org/web/20110503203639/http://finance.yahoo.com/news/Dollar-extends-slide-on-views-apf-3112272241.html?x=0&sec=topStories&pos=7&asset=&ccode= |date=3 May 2011 }}. Retrieved 29 April 2011.</ref> Strengthening the value of the renminbi also fits with the Chinese transition to a more consumer-led economic growth model.<ref>{{cite web|url=http://chinapower.csis.org/renminbi-undervalued/|title=Is the Renminbi undervalued or overvalued?|date=11 February 2016|publisher=CSIS China Power|access-date=26 August 2016|archive-date=18 November 2021|archive-url=https://web.archive.org/web/20211118220520/https://chinapower.csis.org/renminbi-undervalued/|url-status=live}}</ref> 
 
In 2015 the [[People's Bank of China]] again devalued their country's currency. {{As of|2015|9|1}}, the exchange rate for US$1 is ¥6.38.

===Depegged from the US dollar===
On 21 July 2005, the peg was finally lifted, which saw an immediate one-time renminbi revaluation to ¥8.11 per dollar.<ref>{{cite web|date=21 July 2005 |url=http://www.pbc.gov.cn/english//detail.asp?col=6400&ID=542 |title=Public Announcement of the People's Bank of China on Reforming the RMB Exchange Rate Regime |archive-url=https://web.archive.org/web/20070316163534/http://www.pbc.gov.cn/english/ |archive-date=16 March 2007 }}</ref> The exchange rate against the [[euro]] stood at ¥10.07060 per euro.

However, the peg was reinstituted unofficially when the financial crisis hit: "Under intense pressure from Washington, China took small steps to allow its currency to strengthen for three years starting in July 2005. But China 're-pegged' its currency to the dollar as the financial crisis intensified in July 2008."<ref>{{cite web | date=10 June 2010 | url=http://www.marketwatch.com/story/geithner-takes-strong-stand-on-china-currency-2010-06-10?pagenumber=1 | title='Critically important' that China move on currency: Geithner. Treasury chief says he shares Congress' ire over dollar peg | access-date=10 June 2010 | archive-date=23 April 2021 | archive-url=https://web.archive.org/web/20210423193651/https://www.marketwatch.com/story/geithner-takes-strong-stand-on-china-currency-2010-06-10?pagenumber=1 | url-status=live }}</ref>

On 19 June 2010, the People's Bank of China released a statement simultaneously in Chinese and English claiming that they would "proceed further with reform of the renminbi exchange rate regime and increase the renminbi exchange rate flexibility".<ref>[http://www.pbc.gov.cn/english/detail.asp?col=6400&id=1488 Further reform of the RMB exchange rate regime and enhancing the RNM exchange rate flexibility] {{webarchive |url=https://web.archive.org/web/20150403104144/http://www.pbc.gov.cn/english/detail.asp?col=6400&id=1488 |date=3 April 2015 }}</ref> The news was greeted with praise by world leaders including [[Barack Obama]], [[Nicolas Sarkozy]] and [[Stephen Harper]].<ref>{{cite news | title=Global Leaders Welcome China's Yuan Plan | url=https://www.wsj.com/articles/SB10001424052748704365204575316512609162050?mod=WSJ_Markets_LeadStory | newspaper=Wall Street Journal | first1=Michael M. | last1=Phillips | first2=Ian | last2=Talley | date=21 June 2010 | access-date=8 August 2017 | archive-date=22 April 2021 | archive-url=https://web.archive.org/web/20210422171716/https://www.wsj.com/articles/SB10001424052748704365204575316512609162050?mod=WSJ_Markets_LeadStory | url-status=live }}</ref> The [[People's Bank of China|PBoC]] maintained there would be no "large swings" in the currency. The renminbi rose to its highest level in five years and markets worldwide surged on Monday, 21 June following China's announcement.<ref>{{cite web | title = World stocks soar after Chinese move on yuan | url = https://www.google.com/hostednews/afp/article/ALeqM5gTL-hG_nDdnmwzgwNuP51AVtVbqQ | access-date = 12 November 2016 | archive-date = 24 May 2012 | archive-url = https://web.archive.org/web/20120524170306/http://www.google.com/hostednews/afp/article/ALeqM5gTL-hG_nDdnmwzgwNuP51AVtVbqQ }}</ref>

In August 2015, Joseph Adinolfi, a reporter for [[MarketWatch]], reported that China had re-pegged the renminbi. In his article, he narrated that "Weak trade data out of China, released over the weekend, weighed on the currencies of Australia and New Zealand on Monday. But the yuan didn't budge. Indeed, the Chinese currency, also known as the renminbi, has been remarkably steady over the past month despite the huge selloff in China's stock market and a spate of disappointing economic data. Market strategists, including Simon Derrick, chief currency strategist at BNY Mellon, and Marc Chandler, head currency strategist at Brown Brothers Harriman, said that is because China's policy makers have effectively re-pegged the yuan. "When I look at the dollar-renminbi right now, that looks like a fixed exchange rate again. They've re-pegged it," Chandler said."<ref>{{cite news |url=http://www.marketwatch.com/story/china-has-effectively-re-pegged-the-yuan-2015-08-10 |title=China has effectively re-pegged the yuan |first=Joseph |last=Adinolfi |work=Market Watch |date=10 August 2015 |access-date=28 November 2015 |archive-date=23 April 2021 |archive-url=https://web.archive.org/web/20210423135535/https://www.marketwatch.com/story/china-has-effectively-re-pegged-the-yuan-2015-08-10 |url-status=live }}</ref>

===Managed float===
The renminbi has now moved to a [[Managed float regime|managed floating exchange rate]] based on market supply and demand with reference to a [[Currency basket|basket]] of foreign currencies. In July 2005, the daily trading price of the US dollar against the renminbi in the inter-bank foreign exchange market was allowed to float within a narrow band of 0.3% around the central parity<ref>{{cite web|last1=KWAN|first1=C.H.|url=http://www.rieti.go.jp/en/columns/a01_0179.html|publisher=RIETI|title=How China's managed floating system under BBC rules actually works|access-date=21 March 2015|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423172527/https://www.rieti.go.jp/en/columns/a01_0179.html|url-status=live}}</ref> published by the [[People's Bank of China]]; in a later announcement published on 18 May 2007, the band was extended to 0.5%.<ref>{{cite web|date=18 May 2007 |url=http://www.pbc.gov.cn/english//detail.asp?col=6400&ID=837 |title=Public Announcement of the People's Bank of China on Enlarging the Floating Band of the RMB Trading Prices against the US Dollar in the Inter-bank Spot Foreign Exchange Market |archive-url=https://web.archive.org/web/20070316163534/http://www.pbc.gov.cn/english/ |archive-date=16 March 2007 }}</ref> On 14 April 2012, the band was extended to 1.0%.<ref>{{cite web | date=14 April 2012 | url=http://articles.marketwatch.com/2012-04-14/markets/31340930_1_china-economist-yuan-renminbi | title=China to widen daily yuan band vs. dollar to 1% | archive-url=https://web.archive.org/web/20130410023405/http://articles.marketwatch.com/2012-04-14/markets/31340930_1_china-economist-yuan-renminbi | archive-date=10 April 2013 | df=dmy-all }}</ref> On 17 March 2014, the band was extended to 2%.<ref>{{cite news|last=Wang|first=Wynne|url=https://online.wsj.com/news/articles/SB10001424052702304026304579450152960381232?KEYWORDS=yuan+2+band+march&mg=reno64-wsj|newspaper=The Wall Street Journal|title=China's Yuan Falls Further Against Dollar|access-date=14 March 2017|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423140322/https://www.wsj.com/articles/SB10001424052702304026304579450152960381232|url-status=live}}</ref> China has stated that the basket is dominated by the [[United States dollar]], [[euro]], [[Japanese yen]] and [[South Korean won]], with a smaller proportion made up of [[Pound sterling|sterling]], [[Thai baht]], [[Russian ruble|roubles]], [[Australian dollar]]s, [[Canadian dollar]]s and [[Singapore dollar|Singaporean dollars]].<ref>{{cite web | date=10 August 2005 | url=http://www.chinanews.com.cn/news/2005/2005-08-10/26/610367.shtml | title=央行行长周小川在央行上海总部揭牌仪式上的讲话 | access-date=24 February 2010 | archive-date=4 October 2010 | archive-url=https://web.archive.org/web/20101004160438/http://www.chinanews.com.cn/news/2005/2005-08-10/26/610367.shtml | url-status=live }}</ref>

On 10 April 2008, it traded at ¥6.9920 per US dollar, which was the first time in more than a decade that a dollar had bought less than ¥7,<ref>{{cite news|url=https://www.nytimes.com/2008/04/10/business/worldbusiness/10cnd-yuan.html|title=Yuan Hits Milestone Against Dollar|author=David Barboza|newspaper=New York Times|date=10 April 2008|access-date=11 April 2008|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423075755/https://www.nytimes.com/2008/04/10/business/worldbusiness/10cnd-yuan.html|url-status=live}}</ref> and at ¥11.03630 per euro.

Beginning in January 2010, Chinese and non-Chinese citizens have an annual exchange limit of a maximum of US$50,000. Exchanges within this limit require only a passport or Chinese ID and no additional documentation showing the purpose of the exchange. Currency exchange transactions are centrally registered. The maximum dollar withdrawal is $10,000 per day, the maximum purchase limit of US dollars is $500 per day. This stringent management of the currency leads to a bottled-up demand for exchange in both directions. It is viewed as a major tool to keep the currency peg, preventing inflows of "[[hot money]]".

A shift of Chinese reserves into the currencies of their other trading partners has caused these nations to shift more of their reserves into dollars, leading to no great change in the value of the renminbi against the dollar.<ref>{{cite news |last=Frangos |first=Alex |url=https://blogs.wsj.com/japanrealtime/2010/09/16/dont-worry-about-china-japan-will-finance-us-debt/ |title=Don't Worry About China, Japan Will Finance U.S. Debt |work=The Wall Street Journal |date=16 September 2010 |access-date=4 August 2017 |archive-date=8 August 2020 |archive-url=https://web.archive.org/web/20200808041652/https://blogs.wsj.com/japanrealtime/2010/09/16/dont-worry-about-china-japan-will-finance-us-debt/ |url-status=live }}</ref>

===Futures market===
Renminbi [[Futures contract|futures]] are traded at the [[Chicago Mercantile Exchange]]. The futures are cash-settled at the exchange rate published by the People's Bank of China.<ref>{{cite web|url=http://www.cmegroup.com/rulebook/CME/III/250/270/270.pdf|title=Chinese Renminbi Futures|publisher=CME Group|access-date=19 February 2010|archive-date=19 February 2017|archive-url=https://web.archive.org/web/20170219013425/http://www.cmegroup.com/rulebook/CME/III/250/270/270.pdf|url-status=live}}</ref>

===Purchasing power parity===
Scholarly studies suggest that the yuan is undervalued on the basis of [[purchasing power parity]] analysis. One 2011 study suggests a 37.5% undervaluation.<ref name="Lipman 2011"/>

* The [[World Bank]] estimated that, by purchasing power parity, one [[Geary–Khamis dollar|International dollar]] was equivalent to approximately ¥1.9 in 2004.<ref>{{cite web|url=http://devdata.worldbank.org/wdi2006/contents/Table4_14.htm|archive-url=https://web.archive.org/web/20100710061859/http://devdata.worldbank.org/wdi2006/contents/Table4_14.htm|title=World Bank: ''World Development Indicators 2006''|archive-date=10 July 2010}}</ref>
* The [[International Monetary Fund]] estimated that, by purchasing power parity, one International dollar was equivalent to approximately ¥3.462 in 2006, ¥3.621 in 2007, ¥3.798 in 2008, ¥3.872 in 2009, ¥3.922 in 2010, ¥3.946 in 2011, ¥3.952 in 2012, ¥3.944 in 2013 and ¥3.937 in 2014.<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?pr.x=41&pr.y=7&sy=2006&ey=2014&scsm=1&ssd=1&sort=country&ds=.&br=1&c=924&s=PPPEX&grp=0&a= |title=World Economic Outlook Database, April 2009 |publisher=IMF |access-date=6 January 2015 |archive-date=23 April 2021 |archive-url=https://web.archive.org/web/20210423132152/https://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?pr.x=41&pr.y=7&sy=2006&ey=2014&scsm=1&ssd=1&sort=country&ds=.&br=1&c=924&s=PPPEX&grp=0&a= |url-status=live }}</ref>

The People's Bank of China lowered the renminbi's daily fix to the US dollar by 1.9 per cent to ¥6.2298 on 11 August 2015. The People's Bank of China again lowered the renminbi's daily fix to the US dollar from ¥6.620 to ¥6.6375 after [[Brexit]] on 27 June 2016. It had not been this low since December 2010.

===Real exchange rate===

In 2015, the IMF assessed the renminbi's real exchange rate as suggested to be no longer undervalued due to "[t]he subsequent sizable [[Effective exchange rate|REER]] appreciation appear[ing] to be more than would be suggested by changes in fundamentals (productivity growth and improved [[Terms of trade|ToT]])[.]"<ref name="IMF_REER">{{cite journal |title=2015 External Sector Report—Individual Economy Assessments |journal=International Monetary Fund |date=June 26, 2015 |page=13 |url=https://www.imf.org/external/np/pp/eng/2015/062615a.pdf |access-date=11 April 2025}}</ref>

===Internationalisation===
{{main|Internationalization of the renminbi}}
[[File:Putin wenjiabao1.jpeg|thumb|On 24 November 2010, [[Vladimir Putin]] announced that Russia's bilateral trade with China would be settled in [[Russian ruble|roubles]] and yuan, instead of [[United States dollar|US dollar]]s.<ref>{{cite magazine|title=Quotes of the Day|url=https://content.time.com/time/quotes/0,26174,2033058,00.html|magazine=[[Time (magazine)|Time]]|access-date=13 October 2013|date=24 November 2010|archive-date=25 February 2021|archive-url=https://web.archive.org/web/20210225170506/http://content.time.com/time/quotes/0,26174,2033058,00.html|url-status=live}}</ref>]]

Before 2009, the renminbi had little to no exposure in the international markets because of strict government controls by the central Chinese government that prohibited almost all export of the currency, or use of it in international transactions. Transactions between Chinese companies and a foreign entity were generally denominated in [[United States dollar|US dollar]]s. With Chinese companies unable to hold US dollars and foreign companies unable to hold Chinese yuan, all transactions would go through the [[People's Bank of China]]. Once the sum was paid by the foreign party in dollars, the central bank would pass the settlement in renminbi to the Chinese company at the state-controlled exchange rate.

In June 2009 the Chinese officials announced a pilot scheme where business and trade transactions were allowed between limited businesses in [[Guangdong]] province and [[Shanghai]], and only counterparties in [[Hong Kong]], [[Macau]], and select [[ASEAN]] nations. Proving a success,<ref>{{cite web|url=https://china.ucsd.edu/_files/renminbi/pdf-rmb-JinZhongxia.pdf|title=The Use of RMB in International Transactions|access-date=2 July 2016|archive-date=8 June 2021|archive-url=https://web.archive.org/web/20210608073631/https://china.ucsd.edu/_files/renminbi/pdf-rmb-JinZhongxia.pdf|url-status=live}}</ref> the program was further extended to 20 Chinese provinces and counterparties internationally in July 2010, and in September 2011 it was announced that the remaining 11 Chinese provinces would be included.

In steps intended to establish the renminbi as an international [[reserve currency]], China has agreements with [[Russia]], [[Vietnam]], [[Sri Lanka]], [[Thailand]], and [[Japan]], allowing trade with those countries to be settled directly in renminbi instead of requiring conversion to US dollars, with [[Australia]] and [[South Africa]] to follow soon.<ref>{{cite news |url=https://www.nytimes.com/2011/02/11/business/global/11yuan.html |title=In China, Tentative Steps Toward a Global Currency |first=David |last=Barboza |work=The New York Times |date=11 February 2011 |access-date=23 February 2017 |archive-date=23 April 2021 |archive-url=https://web.archive.org/web/20210423025154/https://www.nytimes.com/2011/02/11/business/global/11yuan.html |url-status=live }}</ref><ref>{{cite web |url=http://news.xinhuanet.com/english/video/2012-05/30/c_131620286.htm |title=China, Japan to launch yuan-yen direct trading |date=30 May 2012 |publisher=[[Xinhuanet]] |access-date=10 June 2012 |archive-url=https://web.archive.org/web/20120602021021/http://news.xinhuanet.com/english/video/2012-05/30/c_131620286.htm |archive-date=2 June 2012 }}</ref><ref>{{cite web |url=http://www.abc.net.au/news/2013-04-08/pm-flags-dollar-yuan-currency-deal/4615882 |title=ANZ, Westpac to lead Chinese currency conversion |date=8 April 2013 |publisher=[[Australian Broadcasting Corporation]] |access-date=8 April 2013 |archive-date=6 April 2021 |archive-url=https://web.archive.org/web/20210406065424/https://www.abc.net.au/news/2013-04-08/pm-flags-dollar-yuan-currency-deal/4615882 |url-status=live }}</ref><ref>{{cite web |url=http://www.cbsl.gov.lk/pics_n_docs/09_lr/_docs/directions/bsd/BSD_2011/bsd_BO_2011_1.pdf |title=Designated Foreign Currencies – Central Bank of Sri Lanka |date=27 October 2011 |publisher=[[Central Bank of Sri Lanka]] |access-date=24 January 2014 |archive-url=https://web.archive.org/web/20140202174747/http://www.cbsl.gov.lk/pics_n_docs/09_lr/_docs/directions/bsd/BSD_2011/bsd_BO_2011_1.pdf |archive-date=2 February 2014 }}</ref><ref>{{cite web |url=http://news.xinhuanet.com/english/2015-07/08/c_134394394.htm |archive-url=https://web.archive.org/web/20160206132020/http://news.xinhuanet.com/english/2015-07/08/c_134394394.htm |archive-date=6 February 2016 |title=Bank of China to serve as yuan clearing bank in S. Africa|date=8 July 2015 |publisher=[[Xinhua]] |access-date=22 July 2015}}</ref> In September 2023, the Renminbi passed the euro as the second most utilized currency in international trade, having tripled in the last three years.<ref>Melissa Lawford. Reporter for ''The Telegraph''. (24 December 2023). "How Xi Jinping is challenging dollar dominance with landmark Saudi deal". [https://finance.yahoo.com/news/xi-jinping-challenging-dollar-dominance-120000057.html Yahoo Finance website] Retrieved 25 December 2023.</ref>

===International reserve currency===
Currency restrictions regarding renminbi-denominated bank deposits and financial products were greatly liberalised in July 2010.<ref>{{cite news |url=http://www.ft.com/cms/s/0/2ff1d6ea-9a65-11df-87fd-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/2ff1d6ea-9a65-11df-87fd-00144feab49a.html |archive-date=10 December 2022 |url-access=subscription |title=China revs up renminbi expansion |first=Robert |last=Cookson |work=The Financial Times |date=28 July 2010}}</ref> In 2010 renminbi-denominated bonds were reported to have been purchased by Malaysia's central bank<ref>{{cite news |url=http://www.ft.com/cms/s/0/fecc16fc-c417-11df-b827-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/fecc16fc-c417-11df-b827-00144feab49a.html |archive-date=10 December 2022 |url-access=subscription |title=Malaysian bond boost for renminbi |first1=Kevin |last1=Brown |first2=Robert |last2=Cookson |first3=Geoff |last3=Dyer |work=[[The Financial Times]] |location=Asia-Pacific |date=19 September 2010 |access-date=7 October 2013}}</ref> and that [[McDonald's]] had issued renminbi denominated [[corporate bond]]s through [[Standard Chartered Bank]] of Hong Kong.<ref>[https://archive.today/20120710224427/http://english.cri.cn/6826/2010/08/19/1821s589555.htm " McDonald's RMB Corporate Bond Launched in HK"] 19 August 2010 [[Xinhua]] Web Editor: Xu Leiying, accessed 7 October 2013</ref> Such liberalisation allows the yuan to look more attractive as it can be held with higher return on investment yields, whereas previously that yield was virtually none. Nevertheless, some national banks such as [[Bank of Thailand]] (BOT) have expressed a serious concern about renminbi since BOT cannot substitute the deprecated US dollars in its US$200&nbsp;billion foreign exchange reserves for renminbi as much as it wishes because:
#The Chinese government has not taken full responsibilities and commitments on economic affairs at global levels.
#The renminbi still has not become well-liquidated (fully convertible) yet.
#The Chinese government still lacks deep and wide vision about how to perform fund-raising to handle international loans at global levels.<ref>{{cite web|url=http://www.mcot.net/cfcustom/cache_page/202740.html|title=ธปท.หาทางถ่วงน้ำหนักทุนสำรองหลังดอลลาร์สหรัฐผันผวน|trans-title=BOT. Weighted for the reserves after the US dollar volatility.|publisher=[[MCOT]]|access-date=30 April 2011|archive-url=https://web.archive.org/web/20110926230042/http://www.mcot.net/cfcustom/cache_page/202740.html|archive-date=26 September 2011}}</ref>

To meet IMF requirements, China gave up some of its tight control over the currency.<ref>{{cite news|last=Bradsher|first=Keith|url=https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well&_r=0|title=China's Renminbi Is Approved by I.M.F. as a Main World Currency|date=30 November 2015|work=[[The New York Times]]|access-date=22 August 2018|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423011415/https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well&_r=0|url-status=live}}</ref>

Countries that are left-leaning in the political spectrum had already begun to use the renminbi as an alternative reserve currency to the United States dollar; the [[Central Bank of Chile]] reported in 2011 to have US$91&nbsp;million worth of renminbi in reserves, and the president of the [[Central Bank of Venezuela]], Nelson Merentes, made statements in favour of the renminbi following the announcement of reserve withdrawals from Europe and the United States.<ref>{{cite news |first=Diego |last=Laje |date=29 September 2011 |url=http://business.blogs.cnn.com/2011/09/29/china-yuan-moving-toward-global-currency/ |title=China's yuan moving toward global currency? |work=CNN Business |archive-url=https://web.archive.org/web/20111001062849/http://business.blogs.cnn.com/2011/09/29/china-yuan-moving-toward-global-currency/ |archive-date=1 October 2011 }}</ref>

In Africa, the central banks of Ghana, Nigeria, and South Africa either hold renminbi as a reserve currency or have taken steps to purchase bonds denominated in renminbi.<ref name="august">{{cite news |title=Chinese yuan penetrates African markets |url=https://www.un.org/africarenewal/magazine/august-2014/chinese-yuan-penetrates-african-markets |work=African Renewal |date=August 2014 |access-date=14 October 2018 |archive-date=31 July 2021 |archive-url=https://web.archive.org/web/20210731075429/https://www.un.org/africarenewal/magazine/august-2014/chinese-yuan-penetrates-african-markets |url-status=live }}</ref> The "Report on the Internationalization of RMB in 2020", which was released by the People's Bank of China in August 2020, said that renminbi's function as international reserve currency has gradually emerged. In the first quarter 2020, the share of renminbi in global foreign exchange reserves rose to 2.02%, a record high. As of the end of 2019, the People's Bank of China has set up renminbi clearing banks in 25 countries and regions outside of mainland China, which has made the use of renminbi more secure and transaction costs have decreased.<ref>{{cite web |title=《2020年人民币国际化报告》发布：人民币在全球外汇储备中占比创新高|url=http://www.xinhuanet.com/fortune/2020-08/15/c_1126371624.htm |website= Xinhua Net |access-date=18 August 2020|archive-url=https://web.archive.org/web/20200819024639/http://www.xinhuanet.com/fortune/2020-08/15/c_1126371624.htm|archive-date=19 August 2020}}</ref>

===Use as a currency outside mainland China===
[[File:Chinese Yuan to Hong Kong Dollar exchange rate.webp|thumb|310px|
{{legend|#DE2910|Chinese Yuan / [[Hong Kong dollar|Hong Kong Dollar]] [[exchange rate]]|outline=#FFDE00}}
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The two [[Special Administrative Region of the People's Republic of China|special administrative regions]], [[Hong Kong]] and [[Macau]], have their own respective currencies, according to the "[[one country, two systems]]" principle and the [[basic law]]s of the two territories.<ref>{{cite web | date= 4 April 1990 | url= http://www.info.gov.hk/basic_law/fulltext/content0202.htm | title= The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China | access-date= 23 March 2007 | quote= Article 18: National laws shall not be applied in the Hong Kong Special Administrative Region except for those listed in Annex III to this Law. | archive-date= 15 September 2008 | archive-url= https://web.archive.org/web/20080915174723/http://www.info.gov.hk/basic_law/fulltext/content0202.htm | url-status= live }}</ref><ref>{{cite web | date= 31 March 1993 | url= http://www.umac.mo/basiclaw/english/ch2.html | title= The Basic Law of the Macao Special Administrative Region of the People's Republic of China | access-date= 23 March 2007 | quote= Article 18: National laws shall not be applied in the Macao Special Administrative Region except for those listed in Annex m to this Law. | archive-date= 5 March 2007 | archive-url= https://web.archive.org/web/20070305125541/http://www.umac.mo/basiclaw/english/ch2.html }}</ref> Therefore, the [[Hong Kong dollar]] and the [[Macanese pataca]] remain the legal tenders in the two territories, and the renminbi, although sometimes accepted, is not legal tender. Banks in Hong Kong allow people to maintain accounts in RMB.<ref>{{cite news | title=Hong Kong banks to conduct personal renminbi business on trial basis | url=http://www.info.gov.hk/hkma/eng/press/2003/20031118e4.htm | publisher=Hong Kong Monetary Authority | date=18 November 2003 | access-date=22 March 2007 | archive-date=5 April 2005 | archive-url=https://web.archive.org/web/20050405194119/http://www.info.gov.hk/hkma/eng/press/2003/20031118e4.htm | url-status=live }}</ref> Because of changes in legislation in July 2010, banks around the world<ref>{{cite news | title=Bank of China New York Offers Renminbi Deposits | url=http://www.bocusa.com/portal/Info?id=652&lang=1& | access-date=15 February 2011 | archive-date=22 February 2011 | archive-url=https://web.archive.org/web/20110222000911/http://www.bocusa.com/portal/Info?id=652&lang=1& }}</ref> offer [[foreign currency account]]s for deposits in Chinese renminbi.

The renminbi had a presence in Macau even before the 1999 return to the People's Republic of China from [[Portugal]]. Banks in Macau can issue credit cards based on the renminbi, but not loans. Renminbi-based credit cards cannot be used in Macau's [[casino]]s.<ref>{{cite news | title=Macao gets green light for RMB services | url=http://www.chinadaily.com.cn/english/doc/2004-08/05/content_359235.htm | newspaper=China Daily | date=5 August 2004 | access-date=22 March 2007 | archive-date=23 April 2021 | archive-url=https://web.archive.org/web/20210423025132/http://www.chinadaily.com.cn/english/doc/2004-08/05/content_359235.htm | url-status=live }}</ref>

The government of [[Taiwan]] believes that wide usage of the renminbi would create an [[Black market|underground economy]] and undermine its [[sovereignty]].<ref>{{cite news|title=Regular Press Briefing of the Mainland Affairs Council |url=http://www.mac.gov.tw/english/english/macnews/enews/enews960105.htm |publisher=Mainland Affairs Council |date=5 January 2007 |access-date=21 March 2007 |archive-url=https://web.archive.org/web/20070927003905/http://www.mac.gov.tw/english/english/macnews/enews/enews960105.htm |archive-date=27 September 2007}}</ref> Tourists are allowed to bring in up to ¥20,000 when visiting Taiwan. These renminbi must be converted to [[New Taiwan dollar|Taiwanese currency]] at trial exchange sites in [[Matsu Islands|Matsu]] and [[Kinmen]].<ref>{{cite news | title=CBC head urges immediate liberalization of reminbi conversion | url=http://www.taiwanheadlines.gov.tw/ct.asp?xItem=56017&ctNode=6 | publisher=Government Information Office, Taiwan | date=26 December 2006 | access-date=21 March 2007 | archive-url=https://web.archive.org/web/20070207101017/http://www.taiwanheadlines.gov.tw/ct.asp?xItem=56017&ctNode=6 | archive-date=7 February 2007 | df=dmy-all }}</ref> The [[Chen Shui-bian]] administration insisted that it would not allow full [[convertibility]] until the mainland signs a bilateral foreign exchange settlement agreement,<ref>{{cite news | title=Taiwan prepares to allow renminbi exchange | url=http://www.ft.com/cms/s/13eecafa-9acf-11db-bbd2-0000779e2340.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/13eecafa-9acf-11db-bbd2-0000779e2340.html |archive-date=10 December 2022 |url-access=subscription |url-status=live | newspaper=Financial Times | date=3 January 2007 | access-date=13 March 2007}}</ref> though president [[Ma Ying-jeou]], who served from 2008 to 2016, sought to allow full convertibility as soon as possible.

The renminbi circulates<ref name=peoplesdaily/> in some of China's neighbors, such as [[Pakistan]], [[Mongolia]]<ref name=takungpao>{{cite web |url= http://www.takungpao.com/news/09/05/06/_IN-1077521.htm |title= 人民幣在蒙古國被普遍使用 |publisher= [[Ta Kung Pao]] (大公報) |date= 6 May 2009 |access-date= 3 June 2010 |archive-date= 9 July 2023 |archive-url= https://web.archive.org/web/20230709172708/http://www.takungpao.com/news/09/05/06/_IN-1077521.htm }}</ref><ref>{{cite news|title=Widely used in Mongolia |url=http://chinanewswrap.com/2009/05/07/mongolians-prefer-the-renminbi-to-the-us-dollar |publisher=chinanewswrap.com |date=7 May 2009 |archive-url=https://web.archive.org/web/20120225141710/http://chinanewswrap.com/2009/05/07/mongolians-prefer-the-renminbi-to-the-us-dollar |archive-date=25 February 2012}}</ref> and northern [[Thailand]].<ref>{{cite news | title=Asian Monetary Cooperation: Perspective of RMB Asianalization | url=http://www.newasiaforum.org/china_zhang_runlin.pdf | access-date=28 January 2016 | archive-date=24 February 2021 | archive-url=https://web.archive.org/web/20210224142301/http://www.newasiaforum.org/china_zhang_runlin.pdf | url-status=live }}</ref> [[Cambodia]] welcomes the renminbi as an official currency and [[Laos]] and [[Myanmar]] allow it in border provinces such as [[Wa State|Wa]] and [[Kokang]] and economic zones like [[Mandalay]].<ref name=peoplesdaily/> Though unofficial, [[Vietnam]] recognizes the exchange of the renminbi to the [[Vietnamese đồng|đồng]].<ref name=peoplesdaily>{{cite news | title=RMB increases its influence in neighbouring areas | url=http://english.peopledaily.com.cn/200402/17/eng20040217_134974.shtml | newspaper=[[People's Daily]] | date=17 February 2004 | access-date=13 January 2007 | archive-date=6 July 2014 | archive-url=https://web.archive.org/web/20140706120908/http://english.peopledaily.com.cn/200402/17/eng20040217_134974.shtml | url-status=live }}</ref> In 2017 ¥215&nbsp;billion was circulating in [[Indonesia]]. In 2018 a Bilateral Currency Swap Agreement was made by the [[Bank of Indonesia]] and the Bank of China which simplified business transactions, and in 2020 about 10% of [[Indonesia]]'s global trade was in renminbi.<ref name=diplomat-20200731>{{cite news |url=https://thediplomat.com/2020/07/the-internationalization-of-chinas-currency-in-indonesia/ |title=The Internationalization of China's Currency in Indonesia |author=Muhammad Zulfikar Rakhmat |publisher=The Diplomat |date=31 July 2020 |access-date=11 October 2020 |archive-date=20 October 2021 |archive-url=https://web.archive.org/web/20211020225741/https://thediplomat.com/2020/07/the-internationalization-of-chinas-currency-in-indonesia/ |url-status=live }}</ref>

Since 2007, renminbi-nominated bonds have been issued outside mainland China; these are colloquially called "[[dim sum bond]]s". In April 2011, the first [[initial public offering]] denominated in renminbi occurred in Hong Kong, when the Chinese property investment trust [[Hui Xian REIT]] raised ¥10.48&nbsp;billion ($1.6&nbsp;billion) in its IPO. [[Beijing]] has allowed renminbi-denominated financial markets to develop in Hong Kong as part of the effort to internationalise the renminbi.<ref>{{cite news |title=Hong Kong's first renminbi IPO raises $1.6bn |url=http://www.ft.com/cms/s/0/39d32174-6af2-11e0-9744-00144feab49a.html?ftcamp=rss#axzz1K40sg22y |newspaper=Financial Times |access-date=20 April 2011 |archive-date=23 April 2011 |archive-url=https://web.archive.org/web/20110423004944/http://www.ft.com/cms/s/0/39d32174-6af2-11e0-9744-00144feab49a.html?ftcamp=rss#axzz1K40sg22y |url-status=live }}</ref> There is limited (under 1%) issuing of renminbi bonds in Indonesia.<ref name=diplomat-20200731/>

===Other markets===
[[File:China-CEEC Matchmaking Event 2017 (3).jpg|thumb|Renminbi promotion at the China-CEEC 2017 summit]]

Since currency flows in and out of mainland China are still restricted, renminbi traded in off-shore markets, such as the Hong Kong market, can have a different value to renminbi traded on the mainland. The offshore RMB market is usually denoted as CNH, but there is another renminbi interbank and spot market in Taiwan for domestic trading known as CNT.

Other renminbi markets include the dollar-settled non-deliverable forward (NDF), and the trade-settlement exchange rate (CNT).<ref>{{cite web |url=http://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=UHa14N6Tu3&n=282753.PDF |title=The offshore renminbi |publisher=HSBC |access-date=14 July 2012 |date=1 December 2010 |last1=Hui |first1=Daniel |last2=Bunning |first2=Dominic |archive-url=https://web.archive.org/web/20121022191543/http://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=UHa14N6Tu3&n=282753.PDF |archive-date=22 October 2012 }}</ref><ref>{{cite web|url=http://treasurytoday.com/2011/05/the-birth-of-a-new-currency|date=May 2011|title=The birth of a new currency|website=Treasury Today|access-date=22 August 2018|archive-url=https://web.archive.org/web/20180822215902/http://treasurytoday.com/2011/05/the-birth-of-a-new-currency|archive-date=22 August 2018}}</ref>

Note that the two CNTs mentioned above are different from each other.{{How|date=March 2025}}