What does CNY stand for?

CNY is the official ISO 4217 abbreviation for China's currency. CNH is sometimes used as an unofficial abbreviation for the price of yuan in offshore markets. The yuan character is also used in the names of other currencies, such as the New Taiwan Dollar, Hong Kong Dollar, Singapore Dollar, or the Macanese Pacata.

What is the difference between CNY and CNH exchange rate?

Indeed, they represent two distinct markets. The CNY exchange rate against the dollar has the characteristic of being fixed by the People's Bank of China, with the CNY market being animated by exporters who buy RMB against foreign currencies. The CNH exchange rate is determined by the law of supply and demand of the CNH.

What happened to the CNY?

On April 16, 2012, the CNY daily trading band was raised from 0.5% to 1%. Then, it further expanded to 2% on March 17, 2014. Aug 2018 - Today: The CNY was de-pegged against the USD and referred to a basket of currencies again.

Why is the CNH weaker than the CNY?

The CNH is normally slightly weaker than the CNY based on the historical record. A widened spread is often correlated with Yuan's weakness, especially when a fast-falling Yuan price is seen. This is because China's foreign exchange policy is to gradually increase Yuan's flexibility while keeping the Yuan relatively stable and at reasonable levels.