The Chinese yuan (CNY) is the official currency of the People’s Republic of China. Its formal name is the renminbi (literally “people’s currency”), often abbreviated RMB. The currency uses the symbol ¥ in Latin alphabet contexts and 元 (yuán) in Chinese. CNY is issued by the People’s Bank of China and is the world’s fifth most-traded currency.
CNY is the ISO 4217 currency code for the Chinese yuan — the official currency of the People’s Republic of China. The currency’s formal name is the renminbi (RMB); the yuan is the principal unit of that currency. The symbol is ¥ (Latin) or 元 (Chinese), the ISO numeric code is 156, and the minor unit has 2 decimal places.
One yuan is divided into 10 jiao (角) or 100 fen (分). CNY is issued by the People’s Bank of China (PBOC) and is one of five currencies in the IMF’s Special Drawing Rights basket since October 2016. Unlike most major currencies, CNY is not freely floating — the PBOC operates a managed exchange rate around a daily reference rate.
Yuan vs Renminbi vs RMB vs CNY — What’s the Difference?
This is the single most-asked question about Chinese currency. The four terms refer to closely related but distinct things, and using them correctly matters for international payments, contracts, and FX trading.
Renminbi (RMB)
The formal name of the currency. Means “people’s currency” in Chinese. RMB is the abbreviation. Used in official and policy contexts — the currency itself is called renminbi.
Yuan
The primary unit of the renminbi. A price tag in China is written “100 yuan” the same way a UK price is written “100 pounds”. Yuan is to renminbi what pound is to sterling.
CNY (and CNH)
CNY is the ISO 4217 code for the onshore yuan, traded inside mainland China. CNH is the offshore yuan, traded mainly in Hong Kong, with a separate (though similar) exchange rate.
A useful analogy: renminbi is the currency, yuan is the unit, RMB is the abbreviation, and CNY is the international code. Saying “100 renminbi” is grammatically equivalent to saying “100 sterling” in English — technically meaningful but not how a native speaker would phrase it. The natural form is “100 yuan” in everyday use and “CNY 100” on invoices and SWIFT messages.
Onshore Yuan (CNY) vs Offshore Yuan (CNH)
Few users realise that the Chinese yuan trades in two separate markets with two different exchange rates that move independently — though closely — from each other.
CNY — the Onshore Yuan
Traded inside mainland China, regulated by the People’s Bank of China. The PBOC sets a daily reference rate (the “fix”) against the US dollar each morning, and CNY is permitted to trade within a ±2% band around it. Capital controls limit who can transact in CNY.
CNH — the Offshore Yuan
Traded freely outside mainland China — primarily in Hong Kong, and increasingly in London, Singapore, and Frankfurt. CNH responds to global market forces with no PBOC band. International businesses and foreign investors typically transact in CNH.
For most international transfers from the UK or Europe, the rate you actually achieve is the CNH offshore rate, even when invoiced in “CNY”. The two rates rarely diverge by more than a fraction of a percent in normal conditions, but the gap can widen sharply during episodes of market stress — something to flag if you’re scheduling a large transfer.
Chinese Yuan Symbol & Code — ¥, 元, and CNY
The Chinese yuan symbol ¥ is the same Latin-alphabet symbol used by the Japanese yen — both currencies derive their names from the same Chinese character meaning “round”. To distinguish them, the yuan is sometimes written as CN¥ or RMB in international contexts, while the Japanese yen is written as JP¥.
In Chinese, the currency symbol is 元 (yuán), or formally 圆. For banking, FX, and international invoicing, the three-letter ISO code CNY is the standard. The numeric ISO code is 156, with 2 decimal places (the minor unit).
Chinese Yuan Quick Facts
| Official name | Renminbi (RMB) — principal unit: yuan |
|---|---|
| ISO 4217 code (onshore) | CNY |
| Offshore code | CNH (Hong Kong-traded) |
| ISO numeric code | 156 |
| Symbol | ¥ (Latin) / 元 (Chinese) |
| Subunits | 10 jiao (角) = 100 fen (分) |
| Issuing authority | People’s Bank of China (PBOC) |
| Banknote denominations | ¥1, ¥5, ¥10, ¥20, ¥50, ¥100 |
| Coin denominations | 1 jiao, 5 jiao, ¥1 |
| Exchange rate regime | Managed float against a currency basket |
| SDR basket member since | 1 October 2016 (third-largest weight) |
| Most-traded pair | USD/CNY |
A Short History of the Chinese Yuan
The renminbi was introduced on 1 December 1948 by the People’s Bank of China during the closing months of the Chinese Civil War, replacing a confusing array of regional and inflationary currencies issued under the Republic of China. The unified currency took the name “people’s currency” (renminbi) and used the yuan as its principal unit.
For much of its early history, the yuan was strictly pegged to the US dollar at a fixed rate. From July 2005, the PBOC began a gradual reform: the yuan was unpegged from the dollar and allowed to trade in a narrow band against a basket of currencies. The trading band has been progressively widened over the years, most recently to ±2% around the daily reference rate.
On 1 October 2016, the renminbi joined the IMF’s Special Drawing Rights basket alongside the US dollar, euro, Japanese yen, and pound sterling — the first emerging-market currency to be included. Following the most recent SDR review, the yuan holds the third-largest weight in the basket, behind only the dollar and euro.
The offshore CNH market was launched in 2010 in Hong Kong, allowing international businesses and investors to trade and hold yuan outside mainland China’s capital controls. CNH has grown rapidly and is now also actively traded in London, Singapore, and Frankfurt.
Chinese Bank & Public Holidays Affecting CNY Payments
CNY transfers do not settle on Chinese statutory holidays. The People’s Bank of China and Chinese commercial banks observe the following holidays in 2026 — many of which are extended multi-day closures unique to China.
- New Year’s DayThursday 1 January 2026
- Spring Festival (Chinese New Year)Mon 16 – Wed 25 February 2026 (Year of the Horse)
- Qingming FestivalSat 4 – Mon 6 April 2026
- Labour Day (May Holiday)Fri 1 – Tue 5 May 2026
- Dragon Boat FestivalSat 20 – Mon 22 June 2026
- Mid-Autumn FestivalFri 25 – Sun 27 September 2026
- National Day (Golden Week)Thu 1 – Wed 7 October 2026
Chinese New Year and the October Golden Week each cause settlement delays of a full week or more across mainland Chinese banking. For time-critical CNY transfers around these dates, allow at least 7–10 working days. The offshore CNH market in Hong Kong follows different (shorter) closures.
Transferring CNY — What to Know for Larger Payments
For private clients
Family remittances to and from mainland China, university fee payments to Chinese institutions, and gifting are the most common reasons UK and international private clients transact in CNY or CNH.
Above CNY 200,000 (~£22,000), the rate margin matters — particularly given the gap that can open between the onshore CNY and offshore CNH rates. Cambridge Currencies typically settles via the offshore CNH market for international transfers.
For businesses
UK and EU businesses paying Chinese suppliers, settling cross-border manufacturing contracts, or receiving CNY revenue typically benefit from a dedicated specialist. We can help structure invoicing in CNH for trade receivables, and forward contracts for scheduled supplier payments.
Cambridge Currencies operates with FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951). All transfers are completed by phone with a dedicated specialist.
Popular CNY Currency Pages
Live rates, historical charts, and conversion tables for the most-traded Chinese yuan pairs.
Chinese Yuan / Renminbi (CNY) — Frequently Asked Questions
CNY is the ISO 4217 currency code for the Chinese yuan — the official currency of the People’s Republic of China. The currency’s formal name is the renminbi (RMB), and the yuan is its principal unit.
Renminbi (RMB) is the formal name of the currency — meaning “people’s currency”. The yuan is the principal unit of that currency. The relationship is the same as between sterling (the currency) and the pound (the unit). In everyday use, prices are quoted in yuan; in policy and official contexts, the currency is called the renminbi.
The Chinese yuan uses the symbol ¥ in Latin alphabet contexts — the same symbol as the Japanese yen, because both currencies derive their names from the same Chinese character meaning “round”. In Chinese, the symbol is 元 (yuán). The three-letter ISO code is CNY.
CNY is the ISO code for the onshore yuan, traded inside mainland China and managed by the People’s Bank of China within a ±2% daily band. CNH is the offshore yuan, traded freely outside mainland China — primarily in Hong Kong, London, and Singapore. The two rates usually move closely together but can diverge during periods of market stress.
The People’s Bank of China (PBOC) issues and manages the renminbi. The PBOC is responsible for monetary policy, the daily reference rate (“fix”) for CNY, and the design and production of yuan banknotes.
The renminbi was introduced on 1 December 1948 by the People’s Bank of China during the closing months of the Chinese Civil War, replacing the various regional and inflationary currencies issued under the Republic of China.
No. The Chinese yuan operates under a managed exchange rate. The People’s Bank of China sets a daily reference rate against the US dollar each morning, and CNY is permitted to trade within a ±2% band around it. The offshore CNH market in Hong Kong is freer, but the onshore CNY rate remains managed.
Yes. The renminbi joined the IMF’s Special Drawing Rights basket on 1 October 2016 — the first emerging-market currency to be included. It currently holds the third-largest weight in the basket, behind only the US dollar and the euro.
Both currencies derive their names from the same Chinese character (圓/円), meaning “round” — a reference to the round shape of historical silver coins. In Latin alphabet contexts, both use ¥. To distinguish, the yuan is sometimes written as CN¥ and the yen as JP¥.
Yes. A forward contract lets you fix today’s exchange rate for a CNY (typically settled as CNH) transfer up to 12 months ahead. This is particularly useful for scheduled supplier payments to Chinese manufacturers and for managing the timing risk around Chinese New Year settlement closures.
Authoritative sources used on this page
- People’s Bank of China — banknotes, monetary policy, daily reference rate: pbc.gov.cn
- International Monetary Fund — SDR basket, RMB inclusion: imf.org
- ISO 4217 — currency codes standard: iso.org
- Bank for International Settlements — Triennial Survey of currency turnover: bis.org