Author Topic: One Yuan Coin or banknote? Map tells regional preference.  (Read 1092 times)

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Offline SquareEarth

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One Yuan Coin or banknote? Map tells regional preference.
« on: January 09, 2014, 10:45:10 PM »

A map circulated on the Chinese net tells the regional preference for 1 Yuan, red regions uses primarily coins and the blue regions uses banknotes.

I use the pre-2000 1 Yuan coin and banknote as example. The old coin is much better IMO.


Small denomination notes can be much MUCH more worn out than this.


The map is not official, but largely accurate based on my personal experience. In my place coins are primarily used, but when I traveled to Guangdong they had such a shortage of coins they gave us candies as changes of lower denominations (notes for 1 yuan).

Hong Kong and Taiwan uses coins for HK$1 and NT$5, respectively.

Part of the reason the blue area is short of coins is because we in the red area are hoarding loads of coins in our piggy banks, however.
« Last Edit: November 10, 2015, 08:38:54 PM by Niels »
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Offline Afrasi

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Re: One Yuan Coin or banknote? Map tells regional preference.
« Reply #1 on: January 09, 2014, 11:24:36 PM »
Many thanks! Very interesting!  :)

Online Figleaf

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Re: One Yuan Coin or banknote? Map tells regional preference.
« Reply #2 on: January 10, 2014, 10:40:39 AM »
It looks like the more developed areas use coins. That makes sense to me. I would expect the velocity of money (economists are weird) to be much higher in Guangzhou than in Xinjiang, if only because the good citizens of Beijing can use near money (all kinds of plastic for payments) and bank accounts much more often. This means that money in Beijing is necessary and used for circulation (means of payment), while in Xinjiang, it can also be used as a monetary reserve (storage of wealth). Such reserves are not necessarily the size of a big treasure. They can just be a few notes set aside for when the tax man cometh, in case the tractor breaks down or when new seeds must be bought for planting. Of course, reserves don't circulate very fast.

Notes that don't circulate much don't wear much. A note would turn into a rag in months in Beijing, but could still look pretty good in Xinjiang after years. That would be an important driver for the choice between notes and coins. The owner of a bad looking note would worry if it is still acceptable to the merchants. The owner of a coin would have no such worry, but a coin is more difficult to hide and weighs more. In Beijing, there is no need to hide small change and the extra weight is rewarded by the lack of wear.

An important message from the map is that there are vast differences in development within China and that wealth is concentrated in the coastal area. What complicates things is that the coastal area is dominated by Han Chinese, while the large minorities live in the poor parts.

Had to grin on Taiwan being shown as using a yuan coin. They do, but it's not the same coin.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline augsburger

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Re: One Yuan Coin or banknote? Map tells regional preference.
« Reply #3 on: January 10, 2014, 11:19:00 AM »
I lived in Zhejiang and it was mainly coins, it's not "preference", it's just what there is there.

I now live in Xi'an and I hardly ever get coins, got 2 yesterday, but I can get new coins from the Subway machines if I want to, because they simply don't accept 1 yuan notes. So in theory I could just go in there and try and get loads of coins, but that would mean using the subway more than I need to.

However there was a point during my time in Zhejiang where new mao (jiao) and 1 yuan notes started to appear a lot. I think it's just that the mint can produce enough coins for these areas and the bank has to then produce a tonne of banknotes to cope with the shortfall.


Offline Chinasmith

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Re: One Yuan Coin or banknote? Map tells regional preference.
« Reply #4 on: October 18, 2015, 09:47:17 AM »
The north and south areas shown on the map correspond to the locations of the two main mints in China  -- Shenyang in Manchuria and Shanghai in east central China.  Note that Taiwan is also included in the map as being a coin using area.
Researcher on coins, paper money and tokens of China.