CNY vs CNH: one currency, two markets
CNY and CNH both represent China’s renminbi. The difference is where they trade, how liquidity is managed, and which rate a bank or payment provider may use.
What is the difference between CNY and CNH?
CNY is the ISO currency code used for renminbi in mainland China’s onshore market. CNH is a market convention used for renminbi traded offshore. They are not two unrelated currencies, but their exchange rates can differ because the two markets operate under different liquidity, access and regulatory conditions.
In practice: the relevant rate depends on the invoice currency, beneficiary account, settlement route and provider—not simply the label shown on a public currency website.
| Feature | CNY (onshore RMB) | CNH (offshore RMB) |
|---|---|---|
| Primary market | Mainland China | Markets outside mainland China |
| Code or label | Official ISO 4217 code | Widely used offshore market designation |
| Rate formation | Operates within mainland policy and market frameworks | More directly reflects offshore supply, demand and liquidity |
| Typical users | Mainland businesses, banks and domestic settlement | International banks, investors and cross-border treasury teams |
| Common use | Mainland invoices and local bank transfers | Offshore deposits, trading and some cross-border settlement |
| Can the rate differ? | Yes. A spread can appear between the onshore and offshore markets. | |
RMB, yuan, CNY and CNH explained
RMB and yuan
Renminbi (RMB) is the currency’s name. Yuan is the unit used to state an amount—similar to the relationship between sterling and pounds.
CNY and CNH
CNY identifies the onshore renminbi market. CNH identifies offshore-traded renminbi; the “H” originated from Hong Kong market usage.
Why can CNY and CNH rates diverge?
Different liquidity
The pool of RMB available offshore can be tighter or more abundant than the onshore pool, affecting pricing.
Market expectations
Offshore participants may react quickly to economic news, interest-rate expectations and global risk sentiment.
Policy and access
The onshore market operates within mainland China’s monetary, regulatory and capital-account framework.
Funding conditions
Bank funding costs, settlement demand and time-zone effects can temporarily widen or narrow the spread.
Which rate matters when paying a Chinese supplier?
Start with the transaction documents and settlement instructions. A headline mid-market rate is useful for comparison, but it may not be the executable rate for your payment.
Check the invoice
Confirm whether the supplier quoted CNY, USD or another currency, and make sure the beneficiary name matches the commercial documents.
Check the account
Establish where the beneficiary account is held and whether it can receive the invoiced currency through the proposed route.
Compare total cost
Ask for the applied exchange rate, transfer fee, intermediary deductions and exact amount the recipient should receive.
Compare the delivered cost
Total cost = converted principal + provider fees + intermediary deductions. Compare quotes at the same time and for the same beneficiary route; otherwise the results are not like-for-like.
CNY and CNH FAQ
Is CNH a separate currency from CNY?
No. Both refer to renminbi. CNH is the established market label for offshore-traded RMB, while CNY is the official ISO code and onshore designation.
Can CNY and CNH have different exchange rates?
Yes. Separate liquidity, access conditions and market demand can produce a temporary spread between onshore and offshore rates.
Which rate will my bank or provider use?
It depends on the provider’s conversion route, the beneficiary account, settlement location and product terms. Request a firm quote showing the recipient amount and all fees.
Which one matters for a mainland supplier invoice?
A mainland invoice commonly uses CNY, but the correct route must be confirmed against the invoice, beneficiary bank details and the supplier’s ability to receive funds.
Is the public mid-market rate the rate I will receive?
Not necessarily. Providers may add a spread and fees, while intermediary banks can make deductions. Compare the complete delivered cost.
Related RMB resources
Editorial note: This page provides general educational information and does not provide live exchange rates, financial advice or a recommendation to use a particular provider. Confirm current pricing, eligibility and settlement requirements directly with regulated institutions.
Planning a China payment?
Use our independent guides to verify the route before sending funds.