Advantages of Spending with Chinese Currency
China’s currency, officially known as the Renminbi or Yuan, is becoming increasingly popular with travelers. This has resulted in an uptick in business and tourism in the country, making it a great destination for anyone hoping to explore a new culture. A trip to China can definitely be made even smoother if you understand the basics of their currency. Knowing how to use it and understand its value will make everything from budgeting to paying for goods and services hassle-free.
The Chinese currency, which can also be referred to as CNY (the currency code for the yuan), is said to be the most undervalued currencies in the world. This is beneficial for travelers because it significantly reduces the costs of international exchange, making goods and services significantly cheaper in comparison to other countries. For example, a $400 item in the US would only cost around two thousand CNY. It is important to note that some merchants may reject currency notes with the old one or five jiao denominations. This is mainly because they are quite uncommon nowadays.
Knowing how to haggle is another important factor that travelers should take into account. Haggling is a well-known and common part of shopping in China and involves bargaining down the price of a product. Oftentimes, visitors are able to get the item for less than its original sticker price. While this may seem intimidating or difficult to beginners, experienced travelers will most likely enjoy this process as it often leads to a great deal.
Local Exchange Rates
To maximize the effectiveness of your stay in China, it is important to become familiar with the local exchange rates. This will help travelers understand the value of their money in terms of the Chinese Yuan. Understanding the exchange rate for the CNY to USD or your home country’s currency will also give you an idea of what items or services you can afford in China.
When it comes to exchanging currencies, travelers should stick to reputable or more formal banks and professional currency exchange agencies. They are likely to give you the best rate with the least hassle. Avoid any vendors who may try to give you a bad deal or make a large commission off of your exchange. Additionally, make sure to hang on to your receipts. This helps prevent any double-charging issues and allows one to track their purchases more easily.
Cash and Card Payment
Using cash is widely accepted in China, though, credit or debit cards are also increasingly becoming an acceptable method of payment. It is important to note that cards without a ‘chip’ will not be accepted by machines and cashiers. Additionally, even if your card supports ‘Chip and PIN’ technology there is no guarantee that all banks in China will accept it. This means that carrying cash is still a paramount necessity while traveling.
It would be beneficial for travelers to notify their home bank prior to leaving for their trip. This will help them understand which cards or payment systems will work in China. This can also help them prevent any unexpected blocked transactions or fraudulent activity while they’re away from home.
Calculating Currency Conversion
Getting the best possible deals often requires some math skills. Do not worry; this is a lot easier than you think. Here are some quick tips on how to calculate currency conversions. Firstly, take the exchange rate for the CNY to your home currency, and secondly, divide the price of the item in China by the exchange rate. This will tell you the price of the item back in your home currency. You can also multiply the exchange rate by the price you paid in your home currency to get the price in CNY.
Passport Control
Every traveler needs to fill out specific forms prior to entering China. This includes a visa application prior to arrival and a customs declaration form upon arrival. The good news is that filling the forms doesn’t take much time and you’ll be able to get in and out of the passport control in no time.
Currency Security Tips
Although it should not be an issue in China, you should always remember to be aware of your surroundings. Walking around with large amounts of cash can be dangerous, so make sure to use a money belt or a similar device when necessary. Additionally, make sure not to leave your documents and money lying around, especially if you’re in crowded areas.
Another great way to stay safe is by getting a travel insurance policy. This will allow you to rest assured that if something were to happen to your money, documents, or even personal belongings, you would be covered by your insurance provider.
Traditional Money Changers
Money changers in traditional markets are a common sight in China. Be aware that these money changers will only accept cash. It is important to ask for a receipt and sometimes you may be able to negotiate the exchange rate.
It is essential for travelers to be aware of potential frauds as well. Try to stick to the established money changers who are easily recognizable.
Online Exchange Portal
Using exchange portals or applications such as Alipay or WeChat pay is highly recommended, as it allows you to make payments easily. These portal applications also allow for faster transfers when transferring money from abroad in a foreign currency. Additionally, when shopping online, it is important to make sure that the website is known and reputable to avoid potential scams.
Using ATMs/Cash Machines for CNY
When traveling in China, make sure to use ATMs or cash machines that are affiliated with the Big Four banks: Bank of China, ICBC, China Construction Bank, and Agricultural Bank of China. ATMs linked to other banks are not recommended as they tend to have various commissions or high exchange rates. Additionally, they may reject foreign cards.
Merchant Payment Systems in China
Merchants in China generally prefer to receive payments using electronic payment systems such as Alipay or WeChat pay. These payment methods are becoming widely accepted in stores, restaurants, and other establishments. Learning these payment systems is essential for travelers and makes it a lot smoother to pay for purchases.
Currency Exchange Before the Flight
It is highly recommended to exchange foreign currency to Chinese Yuan prior to the flight, as the exchange rate in China may be higher or lower compared to capitals. Local exchange companies may also offer more competitive exchange rates.
Conclusion
Travelers should take the time to understand the Chinese currency and its exchange rates so as to maximize their experience. Being aware of the exchange rate, the options for payments, and safety tips is a paramount factor in making your trip enjoyable and stress-free. Follow these easy tips, and you should be good to go!
