China's legal tender is Renminbi (RMB). Foreign currencies can not be used directly in China, though some shops illegally accept foreign currencies.

The basic unit of RMB is yuan. 1 yuan (or kuai) =10 jiao (or mao), and 1 jiao = 10 fen. RMB is available in both paper notes and coins. The denominations of paper notes are 100, 50, 20, 10, 5, 2 and 1 yuan; 5, 2 and 1 jiao; and 5, 2 and 1 fen. The denominations of coins are 1 yuan; 5, 2 and 1 jiao; and 5, 2 and 1 fen. The symbol of RMB is ¥.

Foreign currencies may be converted into RMB at all banks, bank branches, major airports, department stores, or hotels at the exchange rate quoted on the foreign exchange marker on the day. Please note that hotels may only exchange money for their guests.

Black market in foreign currency is forbidden in China. People may approach you in front of hotels, at tourist spots or at banks for a black market exchange. You should be extremely careful. The exchange rate may be attractive--higher than the bank rate--but it is illegal and you risk being cheated. Sometimes these people don't give you the right amount, since you don't have time to count the money or, even worse, they may give you fake notes or a bundle of plain paper with a few notes on the top.

When you exchange money at the banks, you should ask for a certificate, with which you can change RMB back to foreign currency when you leave the country.

The Bank of China is the bank which specialises in handing credit cards issued in foreign countries. At present, the following credit cards are accepted in China: Master Card, Federal Card, Visa, American Express, JCB and Diners Card. Holders can draw cash from the Bank of China and pay for purchases at exchange centers of the Bank of China, appointed shops, hotels and restaurants. However, this applies only in major cities. Credit cards are not always accepted for the purchase of rail and air tickets. ATMs that accept foreign cards are few and far between. Do not rely on them as a way of obtaining cash in Mainland China. In the event that you lose your card, you should report to one of the branches of the Bank of China and apply for a replacement. 

The Bank of China has an agreement with foreign financial organizations on selling, cashing in and compensating for traveller's cheques.