Since Qin and Han Dynasties, Chinese money (metal currency) would put its weight on to show its value. That’s to say value of metal money was based on its weight at those times. But this rule had many shortages or inconvenience, for example there could be shortage of bronze or silver, for big transactions, it could be a big trouble to carry large quantity coins.
In 621, Li Yuan changed the rule inherited from Qin and Han Dynasties, Tong Bao (also named Yuan Bao) was built.
At early China, the coin value was determined by both coin quality and quantity. At North Song Dynasty, there was a lack of copper, the government began to mint currency with iron. Iron was such heavy yet cheap that it was inconvenient to carry. Right at this time, paper currency was first printed at Sichuan province of China.
At late Qing Dynasty the Chinese government began to import mint machine from foreign country and make money with machine other than manual labor.-->
Information about Chinese currency and its development in the history.Read the rest of this entry »