Under the general trend of globalization, each country's currency carries its own economic lifeline. China's monetary system is particularly interesting, not only in terms of the renminbi, but also in the Hong Kong dollar, the pataca and the new Taiwan dollar. As the saying goes, "one country has three currencies, each with its own merits", which can't help but make people wonder why there are four legal tenders in the same country.
China, as a country with a vast territory and a large population, has also demonstrated its uniqueness in the use of currency. Many people may still only know the renminbi on the mainland, but in fact, in addition to the renminbi, China has three regional currencies: the Hong Kong dollar, the pataca and the New Taiwan dollar. This phenomenon is unique in the world, so it is important to explore the reasons and effects behind it.
First of all, the renminbi, as the legal tender of the mainland, has undergone five changes since its issuance in 1948. The fifth set of renminbi issued in 1999, 2005, 2015, 2019 and 2020 is mainly in circulation, and includes a variety of denominations ranging from one cent to one hundred yuan. RMB is not only the economic bloodline of Chinese mainland, but also one of the important currencies in the world.
Renminbi
The situation in the Hong Kong dollar and pataca is even more special. Hong Kong and Macau, as two special administrative regions of China, enjoy a policy of "" and retain their own unique monetary systems. The Hong Kong dollar is issued by Bank of China, HSBC and Standard Chartered Bank, while the pataca is mainly issued by Banco Nacional Ultramarino and Bank of China Macau Branch. Although these two currencies circulate in the region, their exchange rates are pegged to the US dollar, indicating an independent and stable financial system.
Hk dollar
pataca
The situation of the new Taiwan dollar used in Taiwan is different from that of the mainland, Hong Kong and Macau. Due to factors, the two sides of the strait have not yet been reunified, and the Taiwan region continues to use its own monetary system. The NTD has a wide range of coins and banknotes, ranging from small five-dollar bills to large 2,000 yuan notes.
New Taiwan Dollar
The existence of such a multi-currency system not only reflects China's regional diversity, but also demonstrates China's flexibility in dealing with complex state structures. For example, Hong Kong and Macau, due to their long history as trading ports, have helped to maintain their status as international financial centres by retaining their currencies. This diversity of monetary policy also allows China to adjust its strategy more flexibly in the world economy.
China's four currencies are like a multi-part symphony, each playing a different melody in its region, and together maintain the country's economic and financial harmony. This unique monetary system not only reflects China's inclusiveness, but also a strong demonstration of "" policy. In a world of growing pluralism, China's case may offer a unique perspective on the management of pluralistic systems for other countries, demonstrating a wisdom that respects regional specificities while maintaining unity.