Monetary System: Why China Has 2 Different Currencies (Yuan and Renminbi)

China uses two currencies: the non-convertible yuan for domestic use and the convertible yuan (renminbi) for international transactions. As of September 12, 2026, one dollar equals 6.7 yuan, which favors Chinese exports. This weakness of the yuan is a strategic choice that allows China to import raw materials at low prices while keeping its products competitively priced abroad. This monetary model enables Beijing to control capital flows while remaining open to global trade.