1、The history and development of Chinese currencyDefinition A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade.CurrencyAncient Curren

2、cyChina is one of the countries where money was used earliest in the world. After Qin Dynasty unified the country, official metal money was cast of Bronze circular in shape with a square hole through the center. This kind of bronze coins had been used in China for over 2000 years until up to Song Dy

3、nasty when earliest paper money in the world appeared. Over 3000 years ago, China began to use shells as money which was also called cowries.In antiquity, people used shells for exchange.Cowries (貝幣)Bronze Coins In the 11th century BC, the bronze was found to be more durable than shells and also con

4、venient carry and collect, so bronze coins were cast in imitation of seashells. Bronze coins in later periods roughly fall into four types: spade coins(布幣), knife coins(刀幣), round coins(環(huán)幣) and yibi cowries(蟻鼻幣). Spade coins in the period of Wangmang (王莽布幣)Yibi cowries in the shape of ants creeping

5、on the nose (楚國蟻鼻錢)Knife coinsCoins of Kaiyuan Tong BaoTong Bao is the name of one kind of ancient Chinese bronze coins which were first used in Tang Dynasty and lasted over 300 years as the main currency. Kaiyuan Tong Bao refers to the bronze coins that were cast in the beginning years of Tang Dyna

6、sty.Coins of Xianfeng Tong BaoJiaozi (交子)Jiaozi was a kind of paper money used earliest in China and also in the world. It was first issued by wealthy businessmen in Chengdu, Sichuan Province in the early years of Northern Song Dynasty (from about 998 to 1022) , and then in the year of 1023, began t

7、o be printed and issued by the government. This kind of paper money, more convenient in use than metal currency, was circulated in markets and could also be exchanged with silver money.Longyang: Dragon Silver Dollar Coins In the late years if Qing Dynasty, Viceroy Zhang Zhidong who administered Guan

8、gdong and Guangxi made a kind of Chinese silver dollar coins with machine. With a dragon design cast on one side, they were also called Longyang (Dragon Silver Dollar Coins)Longyang(龍洋)Modern CurrencyRenminbi (RMB) is the legal currency of PRC, issued by the Peoples Bank of China. It has comprehensi

9、vely reflected the political, economic and cultural characteristics in different historical periods of China and has the reputation of “Identity Card” of the state. Form the year of 1948 till now, five series of RMB have been issued. New China currencyThe lawful currency of the Peoples Republic of C

10、hina is the RMB, and the unit is Yuan.There has already implemented five sets of RMB,and it is to be a currency system of paper, metal, general and precious metal souvenir coin and so on. The sample of No.1 series of RMB paper notes The sample of No.2 series of RMB paper notesThe sample of No.4 seri

11、es of RMB paper notesThe sample of No.5 series of RMB paper notesChinese Currency and SDRThe IMFs decision will eventually put the yuan alongside the dollar, euro, pound and yen in the funds reserve-currency basket, with the IMF giving more weight to Chinas currency than to either the yen or pound.B

12、ut while the decision is a boost for Chinas national self-esteem, it isnt likely to drive a huge surge in yuan buying. Nor is there much threat the yuan as the worlds preeminent reserve currency, especially given Chinas many political and economic challenges.China will speed up the effort to promote

13、 financial reforms and opening.The move will help pave the way for broader use of the renminbi in trade and finance, securing Chinas standing as a global economic power.Conclusion The Renminbi marches towards internationalization The effect of high-speed political, economic and cultural development

14、is that Chinas status in international society is constantly rising, and China is engaging more frequently in cultural and economic exchange and cooperation with other nations of the world. SDR inclusion could be interpreted as international recognition of Chinas increased economic importance and ro

15、le in global financial markets.Every IMF member holds at least some SDRs. Thus, the yuan become freely usable currency, generally accepted by States, RMB business will be more cross-border investment convenient. RMB incorporate SDR will help to broaden the channels for domestic residents to invest overseas, to enhance the effective purchasing power of the people, has brought tangible benefits to the people. the commercial banks , it should increase the RMB-related products and services innovation, to meet dome