Two currencies system

I first visited China in 1987, i.e. 20 years ago.

The law at that time require tourists to use the "foreign exchange certificate", which is different from the "reminbi" used by the local people.

I have a few foreign exchange certificate kept for 20 years. It is like a currency note, but has the following statement ...

BANK OF CHINA. Foreign Exchange Certificate

The yuan expressed in this certificate is equivalent in value to the Reminbi yuan. This certificate can only be used within China at designated places. No request to register its loss will be accepted by the Bank.

All tourists were required to buy and use the foreign exchange certificate. The conversion rate is higher than the local yuan. This is China's way of making tourists pay a higher price (compared to the local people) for the same goods and services.

In subsequent years, China had developed its economy. It ceased the use of the foreign exchange certificate. Tourists now use the same currency (ie Reminbi yuan) as the local people.