In this section, you will find our latest USDCNH news and analysis, you will also be able to read about its history, and find a live chart for technical analysis.
The Chinese Renminbi is one of China’s two currencies. The other one is referred to as the Chinese Yuan with the financial symbol CNY. What is the difference between them? They actually refer to the same currency except that the Renminbi or CNH is used in offshore Yuan centers: Singapore, Hong Kong, London, and Luxembourg. On the other hand, the Yuan or CNY is used for onshore transactions in mainland China.
What is USDCNH?
USDCNH is the financial symbol that represents the exchange rate between the US Dollar and the Chinese Renminbi (CNH).
It was in 1948 when the Chinese Yuan was created along with the People’s Bank of China (PBOC). Because of the protectionist nature of the Chinese policies, the currency was largely limited inside China.
Foreign transactions with the country meant that companies needed to transact using US dollars and the exchange rate was controlled by the government. It wasn’t until after the 2008 financial crisis that the PBOC was forced to open up the Chinese yuan. They changed their policies and created the Chinese Renminbi in order to efficiently participate in the global financial markets. The Renminbi’s or CNH’s value is now determined by market forces.
On the other hand, the Yuan or the CNy’s value is still dictated by the central bank which is announced every morning.
China has become the second-largest economy in the world. In doing so, it has become a major trading partner by almost every country in the world. It is currently ranked as the world’s largest exporter and second-largest importer. Consequently, the country’s economic data tends to affect not just its own currency but others too. For instance, signs of slower growth is sometimes bearish for the Aussie and Kiwi. It is widely seen that if China’s economic growth slows down, so will global growth.
Live USDCNH Chart