How to Identify Counterfeit Chinese Yuan

The Renminbi is one of the most widely traded currencies in the world and the official currency of China. Yuan is the basic unit of the Renminbi; hence the currency is usually known as Chinese Yuan with the code CNY. The People’s Bank of India issues the currency. 

History of Yuan 

The Chinese currency has existed for more than three thousand years. Only the People’s Bank of China has the power to print the currency. Banknotes are printed in values ranging from one fen to one hundred Renminbi. Some banknotes have communist figures like Mao Zedong, the architect of the communist revolution in China, depicted on the obverse; smaller denominations frequently include people wearing traditional clothing.

The Renminbi’s value was fixed to the US dollar until 2005. It was devalued to raise the competitiveness of Chinese industry as China continued its shift from a centrally planned to a market economy and boosted its involvement in international commerce. The Renminbi was added to the IMF’s basket of currencies used as a reserve currency on October 1, 2016, making it the first currency from an emerging market. 

Identifying a Chinese counterfeit currency

Holding counterfeit currency in China is illegal. Thoroughly checking the Banknotes, especially on a trip, is mandatory. In all Chinese banknotes, there are 5 languages: Mangolian, Mandarin Chinese, Uyghur, Tibetan and Zhuang. Listed below are some easy methods to check the originality of the Chinese Yuan. 

• Watermark: Chinese Yuan has a watermark on the left front of the banknote. One can find this holding up to the light. Chairman Mao’s picture can be seen if the currency note is genuine. The watermark in the currency is a distinct feature which can easily denote the originality of the currency. 
• Security line: Checking the security line in the currency note can easily mean the note’s faking. The security line is golden in the middle of the banknotes. 
• Colour: A red and blue symbol enclosed in a red circle can be found below the white space and the serial number. The red and blue edges of the emblem are well-defined on the actual currency. Either they are entirely aligned, or they barely overlap. Typically, the emblem is deformed on counterfeit currency. 
• Texture & Quality: A Chinese currency can be easily found as a counterfeit when the quality is poor. Rubbing your finger gently on the banknotes helps you identify the quality of the notes. The note has a rough structure, and if it is smooth, it may be a counterfeit.
• The sign of “100”: There is a sign of 100 in the top right corner of RMB. It is a clear ‘100 in an oval shape. It may be a counterfeit if it appears to be a faint ‘100’.
• The sound: Take the long side of the bill in your palms and gently ruffle it. In contrast to fake ones, which have a muffled sound, real ones should be audible and distinct. However, this is the most challenging to detect. The sound it makes will be altered because many of the bills are pretty old and worn.

Epilogue

Faking/ counterfeiting a currency is a severe offence under the law. It is the oldest technique to forge money but is still practised.

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