It WAS ESTABLISHED ON THE BASIS OF MERGING AND CHANGING EACH REVOLUTIONARY BASE AREAS AND LIBERATED AREAS IN December 1948. It IS THE ONLY LEGAL CURRENCY IN OUR COUNTRY PRESENT AND BELONGS TO THE PAPER currency STANDARD.
Paper currency standard, also known as “freedom standard”.
A monetary system in which notes issued by the state are used as the standard currency.
Its characteristic is that the state does not stipulate the gold content of paper money, nor does it allow the exchange of paper money with gold (silver). Paper money, as the main currency, has unlimited legal compensation ability.
At the same time, the state also issued a small number of metal coins as a token of circulation, but the value of the token has nothing to do with the value of the metal commodity in which it was minted.
The main contents of the RMB system are as follows: 1. The main unit of RMB currency is “yuan”, and the subsidiary currency is “jiao” and “fen”; 2.
There are ten cents in a dollar and ten cents in a dime.
2. There is no provision on the gold content of RMB, which is not cashed.
The issuance of RMB is guaranteed to be a commodity owned by the state, and gold is mainly used as a reserve for the balance of payments.
3. RMB is the only legal currency in China. Forgery, alteration and destruction of national currency are strictly prohibited.
4. The issuance of RMB shall be highly centralized and unified. The People’s Bank of China is the only legal RMB issuing institution and centrally manages the currency issuing fund.
5. The exchange rate of RMB against foreign currencies shall be formulated by the State Administration and announced daily, and all transactions shall be executed accordingly.