People use 'yuan' and 'renminbi' as if they are the same — the difference is subtle but useful to know. The renminbi is the official currency; the yuan is the primary unit in which it is counted.
Renminbi vs Yuan
Renminbi (RMB) means 'the people's currency' and is the official name of China's money, like 'pound sterling' is the name of UK money. Yuan (CNY) is the unit of account, like 'pound' is the unit. You might say '100 yuan', not '100 renminbi'.
Onshore vs Offshore
The onshore yuan (CNY) trades inside mainland China under managed rules; the offshore yuan (CNH) trades in Hong Kong and other markets with different liquidity and pricing. They usually trade very close but not identically.
Why It Matters in Finance
Understanding the distinction clarifies exchange-rate quotes and international trade: contracts may specify CNY or CNH. It also reflects China's gradual move to internationalise its currency.
FAQ
Are yuan and renminbi the same thing?
Colloquially yes; technically renminbi is the currency, yuan is its unit.
Should I use CNY or CNH for international deals?
Follow the contract and settlement requirements; CNH is used outside mainland China.
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