Lifehacks

What is RMB offshore?

“Onshore RMB” refers to RMB that circulates within Mainland China, while “offshore RMB” refers to RMB that circulates outside Mainland China. ● These two markets differ according to regulations or market participants, and thus each market has its own exchange rate.

What is RMB offshore?

“Onshore RMB” refers to RMB that circulates within Mainland China, while “offshore RMB” refers to RMB that circulates outside Mainland China. ● These two markets differ according to regulations or market participants, and thus each market has its own exchange rate.

What countries use RMB?

ChinaRenminbi / CountryChina, officially the People’s Republic of China, is a country in East Asia. It is the world’s most populous country, with a population of more than 1.4 billion. China spans five geographical time zones and borders 14 countries, the second most of any country in the world after Russia. Wikipedia

What is difference between CNY and CNH?

CNY is RMB currency that’s traded on mainland China. CNH. CNH is RMB currency that’s traded offshore from mainland China, such as in Singapore.

What is RMB clearing?

The clearing bank maintains RMB -denominated accounts for German and European banks and enterprises. These accounts are used to settle RMB payments between the clearing bank’s RMB account holders, as well as cross-border RMB payments with the People’s Republic of China, Hong Kong or other offshore centres.

Why is RMB not convertible?

The Chinese yuan (CNY) is a well known non-convertible currency. The Chinese authorities do not allow convertibility, in part, as a means to facilitate the managed exchange rate of the yuan (the currency peg). Non-convertible currencies are not freely traded in the traditional spot or forward currency markets.

What is offshore CNH?

CNH is the type of Renminbi traded in the offshore market. The offshore market simply refers to everywhere outside of mainland China. Hong Kong is considered part of the offshore market and thus trades using CNH.

What is CNH used for?

In general, CNY is the currency used in China, and CNH is the offshore currency.

How do you own the RMB?

Investors can take positions in the yuan by opening a savings or deposit account with U.S. dollars, but the account is denominated in yuan. Investors can also buy exchange traded funds (ETFs) designed to mirror the performance of the Chinese currency.

Why offshore renminbi business in Hong Kong?

Apart from being a pioneer with a decade of experience and solid foundation in offshore renminbi business, Hong Kong has a clear and unique edge in its very close economic and business links with Mainland China, which underpin the greater size, depth and breadth of the offshore renminbi market in Hong Kong.

How is the renminbi RTGS system in Hong Kong doing?

Statistics from SWIFT show that the value of renminbi settlement handled by banks in Hong Kong accounted for some 70% of the total offshore renminbi payments conducted vis-à-vis Mainland China and within the offshore market globally. There have been continued enhancements made to the renminbi RTGS system in Hong Kong.

Which banks can participate in the renminbi clearing platform in Hong Kong?

Any bank in Hong Kong or in any part of the world can do so by participating directly in the renminbi clearing platform in Hong Kong or participating indirectly through their branches or subsidiaries in Hong Kong. The Bank of China (Hong Kong) Limited is currently the clearing bank of the renminbi clearing platform in Hong Kong.

What is the renminbi liquidity pool in Hong Kong?

Renminbi activities in Hong Kong are supported by the renminbi liquidity pool in Hong Kong, which is the largest outside Mainland China. At the end of October 2015, renminbi customer deposits and certificates of deposit issued by banks in Hong Kong together amounted to around RMB1 trillion yuan. Renminbi deposits in Hong Kong RMB billion