The basic unit of currency in China is the renminbi, commonly referred to as the yuan. The renminbi was introduced in 1949 and is issued by the People's Bank of China, the country’s central bank. The currency plays a crucial role in China's economy and international trade, especially as China has emerged as a global economic power. The yuan is further divided into smaller units called jiao and fen, although these are less commonly used today. The exchange rate of the yuan against other currencies can greatly influence the global markets, and China's monetary policy impacts economies worldwide.