RMB: meaning, definitions and examples
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RMB
[ ˈrɛnminˌbi ]
currency, finance
RMB stands for Renminbi, which is the official currency of the People's Republic of China. It is often referred to by its primary unit, the yuan. The Renminbi is also used in international trade and is increasingly gaining significance in global financial transactions.
Synonyms
Chinese currency, yuan
Examples of usage
- I exchanged my dollars for RMB before traveling to China.
- The RMB has appreciated significantly against the dollar this year.
- Many countries are beginning to accept RMB for trade agreements.
- Investors are closely watching shifts in the RMB's exchange rate.
Etymology
The term 'Renminbi' literally translates to 'people's currency' in Mandarin Chinese. It was introduced by the People's Bank of China in 1948, as the country transitioned to a communist state under the leadership of Mao Zedong. The currency was initially introduced to replace the various forms of currency that existed in China before the communist revolution. Over the years, the RMB has gone through several changes, including the introduction of banknotes and coins in different denominations. The primary unit of the Renminbi is the yuan, which is often used in everyday transactions. Recently, the RMB has gained traction in international markets, being included in the International Monetary Fund's Special Drawing Rights (SDR) basket in 2016, further establishing its significance in the global economy.