Chinese Yuan price today

The Chinese yuan price may appear less often in daily news than the dollar and the euro, but it matters a great deal to Iran's economy; China is Iran's largest trading partner, and a large share of imported goods, from industrial parts to electronics, comes from there. On this page you can see the live price of the yuan on Tehran's open market in Toman, and below you will learn about this currency's distinct mechanism, its role in Iran's trade, and the factors that affect its Toman rate.

Yuan or renminbi?

The official currency of the People's Republic of China is called the "renminbi" (meaning "the people's money"), and the "yuan" is its unit of account; just as we say Britain's currency is sterling and its unit is the pound. The international code for this currency is CNY and its symbol is ¥, the same as the Japanese yen's symbol. Each yuan is divided into 10 jiao, and each jiao into 10 fen.

China's monetary policy is set by the People's Bank of China (PBOC) . In 2016 the International Monetary Fund added the yuan to the Special Drawing Rights (SDR) currency basket, a sign that the yuan had been accepted as one of the world's major currencies. Even so, the yuan's share of global reserves and trading is still far smaller than that of the dollar and the euro.

How is the yuan priced?

Unlike the dollar, the euro or the yen, the yuan is not fully floating; China's exchange rate regime is a "managed float":

• Daily reference rate: China's central bank announces a reference rate for the yuan against the dollar every business day.
• Permitted trading band: In China's domestic market, the yuan can only trade within a set range (2 percent above or below) of this reference rate.
• Onshore and offshore yuan: The yuan traded inside China is known by the code CNY, and the yuan traded in Hong Kong and other financial centers outside China is known by the code CNH . The two are usually close, but CNH moves more freely and sometimes reacts to news sooner than CNY.

As a result of this mechanism, the yuan usually moves more calmly and in a more controlled way against the dollar than other major currencies do.

The yuan in Iran–China trade

For years China has been Iran's most important trading partner and one of the main buyers of Iranian oil. Part of the trade between the two countries, especially under sanctions and limited access to the dollar, is settled in yuan. That is why in Iran the yuan is less a travel currency than a trade currency :

• Imports of goods: Importers of machinery, parts, electronics and raw materials need yuan to pay Chinese sellers.
• Yuan remittances: The dominant form of yuan trading in Iran is remittance, not banknotes. Traders obtain yuan remittances through exchange offices to pay into Chinese accounts.
• Official systems: The yuan is also offered on the Central Bank's currency systems to supply foreign currency for imports, and its rate there differs from the open market.
• Travel and study: Business trips to cities such as Guangzhou and Yiwu, along with a smaller number of students, create limited demand for yuan banknotes.

How is the yuan's Toman rate formed?

The price of the yuan in Tehran is roughly equal to the price of the open-market dollar divided by the dollar-to-yuan rate (USD/CNY) on the global market. Since each dollar is worth several yuan, the yuan's Toman rate is a small fraction of the dollar's, and its changes look smaller in Toman terms; to compare it with the dollar, look at the percentage change.

Because the yuan is controlled against the dollar, the yuan's Toman chart usually looks very similar to the open-market dollar chart. If the two drift apart over a period, the reason is either a change in the yuan's reference rate in China or specific supply and demand for yuan remittances in the Tehran market.

Factors affecting the yuan price

1. Domestic factors in Iran

Inflation, liquidity growth, foreign currency revenue and sanctions determine the value of the rial and account for most of the yuan's long-term movement in Tehran; in other words, the yuan largely moves in the same direction as the dollar.

2. China's currency policy

The People's Bank of China's decisions on the reference rate, interest rates and banks' reserve requirements shift the yuan's global value. As a major exporter, China usually prevents sharp swings in its currency.

3. China's economy and trade relations with the US

Data on China's economic growth, industrial production, exports and purchasing managers' index, as well as trade and tariff tensions between China and the US, affect the yuan and currencies tied to China's economy, such as the Australian dollar . You can see the release times of this data in Teagle's economic calendar .

4. Remittance and transfer conditions

Tougher conditions for transferring money to China, changes in Chinese banks' rules on Iran-linked accounts, or rising import demand can push the yuan remittance rate away from the calculated rate.

5. China and the gold market

China is one of the world's largest gold consumers, and in recent years the People's Bank of China has allocated part of its foreign reserves to gold. Chinese demand is one of the factors that affect the global gold price (ounce) , and through this channel it indirectly reaches Iran's gold market too. This relationship shows that following China's economy matters to Iranian market participants beyond just the yuan rate.

Tips for buying yuan

• Be clear about the type of transaction: The rate on this page is the open-market rate; the rate for a yuan remittance to a Chinese account can differ depending on the route and delivery time.
• Consider liquidity: The market for yuan banknotes in Tehran is small, and reselling them may not be as quick as with the dollar.
• Use a licensed exchange office: Buying and selling currency and remittances are subject to the regulations of the Central Bank of Iran.
• Prices are in Toman: Each Toman is ten rials, and rates on official systems are usually quoted in rials.

The yuan alongside other markets

To compare the yuan with other currencies that play a role in Iran's trade, the UAE dirham price, See the Turkish lira price and the euro price . China's economy is the largest consumer of many basic commodities, and its news also affects the oil price . Follow the full list of rates in the Iran market currency section , and to see the yuan's trend over several months, open the candlestick chart at the top of the page on longer timeframes.

The information on this page is for informational purposes only and is not a buy or sell recommendation. Prices are obtained from the stated sources and may differ slightly from the rate at your local exchange office.