USD, RMB, CNY: Cracking the Code Between Chinese Currency Names

Solving the Mystery: Why Are There Two Names for China’s Money?

Most of us know "USD" is the US Dollar. But when it comes to China, you’ll see "RMB" on some websites, "CNY" on others—and sometimes both, like on a SWIFT form. It’s confusing. Let’s sort it out.

Step One: Understanding the Terms (and Missteps!)

Back when I first opened a Wise (formerly TransferWise) account, I typed "RMB" in the currency dropdown, trying to send money to a friend in China. Result? Zero hits. Only when I put "CNY" did it click. Meanwhile, on Alibaba, every listing is priced in "RMB". What's going on?

• RMB—means "Renminbi" (人民币), literally: "The people's currency". It’s like calling dollars "U.S. currency".
• CNY—the standard code per ISO 4217 for “Chinese Yuan”. It functions like USD: United States Dollar, EUR: Euro, etc.

A little personal side note: For ages, I thought "yuan" and "renminbi" were totally separate, like cents and dollars, but no: “Yuan” is the unit, “Renminbi” is the currency's full formal name (People’s Bank of China explainer).

Step Two: Real-Life Usage (Screenshots & Oopsies Included)

I once tried to pay for a Taobao order using PayPal. The confirmation screen said my card would be charged "RMB", but in PayPal’s backend, the transaction popped up as "CNY". Here’s a clip:

Industry expert Lucy Wang, who manages cross-border logistics for an e-commerce firm, put it like this when I asked her on LinkedIn:
“RMB is the umbrella term—when you talk about Chinese money in general. But banks and payment gateways must stick to ‘CNY’, because that's what the international banks and the SWIFT network recognize. It keeps the books clear.”

Step Three: The Legal and Regulatory Angle

Let’s get official. The International Organization for Standardization (ISO) sets global currency codes:

• ISO 4217 assigns “CNY” as the global trading code for the Chinese currency.
• Regulators like the People’s Bank of China and SWIFT use “CNY” for banking and cross-border trade.
• “RMB” is not a trading code; it’s shorthand for Renminbi used in local trade or colloquial talk.

According to China’s Ministry of Finance’s 2015 policy explanation (official site (Chinese)), bank accounts, invoices, and contracts involving foreign entities must use “CNY” to comply with international standards. But within China, "RMB" is totally fine.

“If you’re exporting goods, your contract has to say ‘CNY’. But locals will ask, ‘你收多少人民币?’ (‘How much RMB do you get?’)” — Market broker interviewed in Yiwu, 2021

Case Study: Sending Money from the US to China

Here’s where it gets complicated. I tested three platforms: Wise, PayPal, HSBC. All forced me to select "CNY" as the destination currency, not "RMB." If you type "RMB", you get either an error or a gentle nudge to use "CNY" instead.

But when you talk to Chinese friends or suppliers on WeChat, everyone says "RMB". That’s just the everyday lingo.

Gotchas and Miscommunications

• I’ve had invoices where the seller wrote “RMB 10,000”, but the bank wire asked for “CNY 10,000”. If you mismatch, your payment could actually bounce—especially if it’s a big cross-border wire.
• Some customs forms (even official ones) may list both abbreviations—which only makes it worse for beginners.

Comparing International Currency Labeling: The "Verified Trade" Angle

Globally, most countries use the ISO currency code (i.e., what appears in SWIFT and on customs documents) as their formal identifier:

Country	Currency Name	Local Abbreviation	ISO 4217 Code	Legal Reference	Enforcement Body
China	Renminbi (Yuan)	RMB	CNY	ISO 4217, PBOC Regs	People’s Bank of China
United States	United States Dollar	USD	USD	ISO 4217	US Federal Reserve
Japan	Yen	JPY	JPY	ISO 4217	Bank of Japan
Europe (Eurozone)	Euro	EUR	EUR	ISO 4217	European Central Bank
India	Rupee	INR	INR	ISO 4217, RBI Rules	Reserve Bank of India

Key point here: Only China really has this two-name system in active use. Most other countries’ local and international codes match.

Simulated Real-World Dispute: A Tale of Two Nations

Let’s say a US importer writes "RMB 20,000" on a PO. The Chinese exporter’s bank insists it needs "CNY", since the SWIFT system demands ISO codes. Result? The payment is delayed, with both sides blaming each other.
Expert quote: “We had a batch of automative parts stuck for days at customs because the US invoice said ‘Renminbi’ and our bank wanted ‘CNY’. Now our contracts always list both: ‘CNY (Renminbi)’ to avoid trouble.” (Interview with Julia Song, Shanghai-based CFO; see her profile).

Extra Bite: How Do Global "Verified Trade" Standards Differ?

Standards for “verified trade” (for example, proofs for country of origin or contract currency) vary widely. Here are some references and differences:

• US: USTR and US Customs require ISO codes in customs declaration forms. See CBP Form 7501.
• China: Ministry of Commerce mandates currency units match ISO 4217 in foreign trade declarations (official link).
• Europe: WCO and OECD standards apply for intra-EU and extra-EU trade (OECD trade facilitation).

Conclusion: My Two Cents on RMB vs. CNY

To sum up, “RMB” is how locals talk about the Chinese currency, but “CNY” is the precise code you need for anything official, international, or involving a bank. The difference isn’t just cosmetic—it can halt your money mid-flight if you pick the wrong one. From my experience chasing down failed payments, you’re always better off double-checking your documentation—sometimes what sounds like a nitpicky rule actually saves you from real headaches.

My suggestion: Always use “CNY” in any formal or cross-border paperwork, but don’t sweat it if your supplier refers to “RMB” in a chat or casual invoice—just clarify before wiring big sums. If you’re launching a new business, teach your finance team this (ideally before a late-night payment chase). And honestly? I still slip up and call it “RMB” even in emails. Habit is hard to break.