CNH vs CNY: Differences Between Chinese Yuan (2026 Guide)

Mainland China's economy is the second-largest in the world by GDP this year, with gross domestic product (GDP) growing by 5% over the past few years.

If you are looking to do business in China, you have likely encountered their currency, the "renminbi," also known as the Chinese Yuan (¥). The renminbi is often referred to by the symbols CNY, CNH, and RMB. These multiple names have led to confusion for those making investments involving the Chinese currency or navigating China's foreign exchange policies.

However, understanding the distinction is crucial as it affects how transactions are handled and how currency values may fluctuate. This article explains the key differences between CNY, CNH, and RMB, along with guidance on the roles these currencies play in international trade.

Renminbi is the official name of Mainland China’s national currency, and it actually means “people’s currency” in Mandarin. 

Yuan is a unit of the renminbi currency, similar to what the "dollar" is to the US currency. Another analogy is to think of the Pound Sterling, which is the official currency of the United Kingdom and whose unit is referred to as Pound.

Yuan is the name by which many Chinese people call their currency. Additionally, the renminbi and Yuan are often used interchangeably. 

The symbol ¥ represents the renminbi or Yuan, with its international currency code (ISO code) being CNY. 

The renminbi is abbreviated as RMB and sometimes coded as CNH. 

Although RMB and CNH are not official ISO codes, some banks and financial institutions may treat them as such.

CNY and CNH are two types of the renminbi (RMB), representing the onshore and offshore versions of China's currency, respectively.

In short:

• CNY is the ISO code for the renminbi currency traded only within Mainland China, sometimes referred to as onshore renminbi (RMB) or Chinese Yuan onshore.
• CNH is a widely used code for the renminbi currency traded outside of Mainland China, sometimes referred to as offshore renminbi (RMB) or Chinese Yuan offshore.

In the past, the renminbi could only be traded within Mainland China. To internationalize its currency, China introduced an offshore version of the renminbi known as CNH.

As Mainland China is still not completely open to international foreign exchange and capital markets, both types of renminbi—CNY and CNH—coexist today.

CNY and CNH both denote China’s currency, the renminbi, but they function in separate markets. The main differences include where they are traded, the level of restrictions, regulatory oversight, and exchange rates.

Below is a summary table outlining the key differences.

CNY is used inside Mainland China for domestic spending and business transactions between Chinese companies. Foreign businesses operating in China also use CNY for local transactions.

CNH is mainly used by international businesses, investors, and financial institutions for cross-border payments, trade settlement, and investment activities involving China outside Mainland China. It is traded in international markets and offshore financial centres such as Hong Kong, Singapore, and New York.

CNY is managed by the People’s Bank of China and the State Administration of Foreign Exchange, which regulate capital flows and set limits on exchange rate movements. Trading and access to CNY are restricted, with participation limited primarily to Mainland China residents under China’s capital control system.

CNH faces fewer restrictions and trades more freely against other currencies. While it is not directly controlled, it may still be influenced by local regulators, depending on where it is traded. The Hong Kong Monetary Authority plays an influential role in the CNH market.

Traditionally, China tightly controlled its currency and restricted international financial transactions, allowing RMB settlements only within Mainland China. 

Aiming for more global economic growth, Mainland China started a pilot program for settling trades in the renminbi and lifted restrictions on RMB trade settlements between China and Hong Kong in 2009. This marks the first time RMB settlements were allowed outside Mainland China. 

Since then, regulations have gradually relaxed, fostering the development of RMB markets offshore, alongside the onshore market in Mainland China where buying and selling restrictions remain.

The offshore RMB is denoted by the unofficial code CNH, where "H" actually stands for Hong Kong. 

Hong Kong remains the most active offshore market, but some others are growing fast: South Korea, Malaysia, Singapore, Australia, Brazil, the United Kingdom, the European Union, and Canada.

The CNY exchange rate is managed by the People’s Bank of China, China’ central bank, which sets a daily reference rate and allows it to fluctuate within a controlled range of up to 2.0%.

By contrast, the CNH exchange rate is determined by market supply and demand and fluctuates freely offshore. As a result, CNY and CNH can trade at different levels against other currencies, with CNH historically tending to be slightly weaker.

Within China, CNH and CNY generally hold the same value, and the exchange rate is 1:1, meaning CNY1 = CNH 1.

Although the rate is 1:1, converting CNY to CNH might involve slightly higher fees due to potential currency controls on moving money out of China. It's always advisable to check any associated fees. 

For example:

If you're involved in business with China, whether it's importing from Chinese suppliers or accepting payments from Chinese customers, here's what you need to know about currency conversions:

When Sending Money TO China:

• Converts to CNY (Mainland China's domestic currency)
• Can be expensive and slow due to regulations
• Requires banks experienced in international trade
• Consider opening a CNY-denominated account if importing goods regularly

When Receiving Money FROM China:

• May receive CNH (depending on transaction specifics)
• Exchange rates may differ slightly from CNY rates
• Check with your bank in advance for current rates
• Dual currency system can impact remittance outcomes

Because money movements in and out of China are highly regulated, sending money to China can be expensive and slow in some cases.

The dual currency system can also impact the outcome of your remittance, depending on which rate is most favourable at the time.

Not all financial institutions handle CNY transactions, so selecting banks experienced in international trade with China is crucial. If you're importing goods and need to pay in CNY, consider opening a CNY-denominated account with a bank or financial institution that offers international services.

With a Statrys business account, you can hold various currencies and make seamless money transfers to and from China.

Statrys is a payment service provider that offers multi-currency business accounts with competitive exchange rates, tailored specifically for incorporated companies in Hong Kong, Singapore, or the BVI.  

Statrys offers: 

✅Multi-currency business accounts, including RMB, HKD, USD, EUR, GBP, and more  

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✅Cross-border payments, with real-time tracking

✅Expert support via email, phone, WhatsApp and WeChat