China's currency is the Renminbi (RMB), or "People's money", issued by the People's Bank of China. RMB is divided into units known as yuan or "dollars". Each yuan is divided into 100 fen. Ten fen constitutes a unit known as a jiao, colloquially mao.

China has issued four sets of RMB. Twelve denominations are circulating in the market, including 1 fen, 2 fen, 5 fen, 1 jiao, 2 jiao, 5 jiao, 1 yuan, 2 vuan, 5 yuan, 10 yuan, 50 yuan and 100 yuan. One fen, 2 fen, 5 fen. 1 jiao, 2 jiao, 5 jiao and 1 yuan are available in both notes and coins.

Taking RMB out of the country is restricted, but it is now possible to take up to $5,000 out of the country legally; although bringing RMB into China is still legally questionable. RMB is nor a convertible currency, and many of the difficulties experienced by foreigners trying to do business with China come from the country's lack of foreign exchange and obstacles in getting their money out of the country. To simplify the exchange situation for foreigners, a convertible currency, the Foreign Exchange Certificate (FEC) was issued in 1980, however, it is eliminated in 1994.

Many swap centers were formed for currency exchange, and a nationwide electronic system for currency exchange has been established since the beginning of 1995. However, RMB can be bought and sold only as needed for authorized purchases, such as for commercial and travel requirements, and only with authorized entities under strict controls. Foreigners wishing to do business in China must receive authorization form the Ministry of Foreign Trade and Economic Cooperation (MOFFEC) or other appropriate authority, in order to be eligible to participate in foreign exchange transactions. The recent announcement by the Chinese government on RMB free conversion may lift some of these restrictions.

RMB has been progressively devalued during the years since China began to open up to the world. falling 70% against the US dollar between 1981and 1990. Actually the elimination of the FEC on Jan 1. 1994 resulted in an effective immediate devaluation of 50 % from an official dollar to RMB rate of 5.8 to 8.7, the prevailing rate on the swap markets. Since then, the exchange rate of RMB to hard currencies in the swap center of China has increased steadily. For more than a decade, the exchange rate of RMB to US dollars is 8.27 and a RMB 100 note is worth about US$ 12.00 at the official, as of July 20 2005.

On July 21 2005, RMB was appreciated by 2.1% against the dollar and ended 10 years of fixed rate of RMB with the US dollars. The People's Bank of China announced on the same day that RMB will be valued against a basket of currencies and will be allowed a 0.3% floatation daily.