Not one to shy away from doing things differently to the rest of the world, China’s currency situation is no exception.

While most countries suffice with one currency type, China has two.

Although the two currencies are not worth the same amount, they are confusingly both referred to as the yuan (CNY) or renminbi (CNH), and share the same bank notes.

To tell each currency apart, look at where the transaction is settled – domestically or internationally.

Domestic transactions and international transactions have different ISO codes: CNY relates to the currency used in the domestic economy and CNH is for international trade.

While the local value of CNY is still dictated by the People’s Bank of China, the CNH is freely tradeable like most other global currencies.

Typically, the values of CNH and CNY will diverge depending on liquidity – i.e. how easily traders can attain a currency.

Additionally, if the People’s Bank of China wants to intervene in markets, then it will use the CNH.





Disclaimer: These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits. We have no commercial affiliation with any organisation or commercial interest regarding the venues mentioned in this article. The information is only provided as gathered and should be verified before, using your own judgement. 

*Although WorldFirst has prepared the Information contained in this website with all due care and updates the Information regularly, World First does not warrant or represent that the Information is free from errors or omission. Whilst the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and WorldFirst is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.