What's the Difference Between CNY, CNH, and RMB? Understanding China’s Currency Codes
If you've ever dealt with international business, foreign exchange, or even just browsed currency rates, you've likely come across multiple codes representing the Chinese yuan: RMB, CNY, and CNH. While they all refer to China’s currency, they’re not exactly the same. Let’s break down what each one means and how they're used.
What Is RMB?
RMB stands for Renminbi, which literally means “People’s Currency” in Chinese. It’s the official name of China’s currency, much like how “British pound sterling” is the full name for the UK’s currency. RMB is a general term and is often used in news articles or informal conversations. However, RMB is not the official currency code used in financial transactions.
Official Currency Codes: CNY vs CNH
| Code | Meaning | Where It's Used |
|---|---|---|
| CNY | Official ISO currency code for yuan used inside mainland China | Mainland China |
| CNH | Currency code for yuan traded offshore (outside mainland China) | Offshore markets like Hong Kong, London, and Singapore |
CNY is the official ISO 4217 currency code for the Chinese yuan. It refers to the currency used and regulated within mainland China—also known as the onshore yuan. Meanwhile, CNH stands for the offshore yuan, which is the same currency but traded in markets outside of mainland China, such as Hong Kong. The 'H' in CNH stands for Hong Kong.
The difference between CNY and CNH is more than just location—they’re traded under different systems. CNY is tightly controlled by China’s central bank, while CNH is more freely traded and reflects market demand. As a result, exchange rates for CNY and CNH can differ.
Why You Might See CNH in Currency Data
In practice, many global platforms—especially outside China—use CNH when quoting Chinese currency exchange rates. For example, foreign exchange data providers in Korea display Chinese yuan rates under CNH, since they reflect the offshore market rate that’s more relevant for international transactions.
Quick Summary
- RMB: Short for Renminbi, the general name for China’s currency (not a currency code)
- CNY: The official ISO code for yuan traded inside mainland China
- CNH: The code for yuan traded outside mainland China (offshore yuan)
If you're trading with Chinese partners, sending money, or analyzing exchange rates, understanding these distinctions can help you make more accurate financial decisions.
