What is the difference between CNY and CNH?

CNY is the onshore renminbi, traded in a managed band around the PBoC's daily fix. CNH is the offshore renminbi, traded more freely outside mainland China.

What is the daily fix?

Each trading day the PBoC sets a reference rate for the renminbi against the dollar. The onshore currency trades in a band around it, so the fix is a closely watched signal of policy intent.

How does the PBoC affect global markets?

As the central bank of the world's largest commodity importer, its liquidity and currency decisions ripple into commodity prices, the Australian and New Zealand dollars, and Asian FX.

People's Bank of China

PBoC · China · CNY/CNH

The People's Bank of China manages Chinese monetary policy and the managed renminbi, with broad spillovers to commodity and Asian currencies.

The People's Bank of China (PBoC) operates differently from Western central banks. Rather than a single headline policy rate, it uses a suite of tools — reserve requirement ratios, medium-term lending facilities, the Loan Prime Rate, and a daily reference rate (the 'fix') for the renminbi — within a managed exchange-rate regime. The onshore renminbi (CNY) trades in a band around the daily fix, while the offshore version (CNH) trades more freely.

Because China is the world's largest commodity importer and a central node in global supply chains, PBoC policy and the renminbi's level have outsized spillovers into commodity prices, the Australian and New Zealand dollars, and emerging-market currencies across Asia. The daily fix is itself a closely watched policy signal.

Policy rate

Loan Prime Rate & policy rates

Meeting cadence

The PBoC adjusts its various policy tools as needed rather than on a fixed eight-meeting calendar; the Loan Prime Rate is set monthly and the renminbi fix is published every trading day.

Decision-making

The PBoC operates under the State Council; policy is closely coordinated with broader government economic objectives.

Currency

CNY/CNH

Mandate

Maintain the stability of the currency's value and thereby promote economic growth
Support financial stability under the direction of the State Council

How it moves CNY/CNH

The daily renminbi fix signals official tolerance for currency strength or weakness.
RRR cuts and lending-facility changes affect domestic liquidity and risk sentiment.
Chinese growth and stimulus drive commodity prices and the Aussie/kiwi.
CNH moves transmit into broader Asian and emerging-market FX.

What to watch

Daily renminbi fix
Stronger- or weaker-than-expected fixes signal policy intent.
Loan Prime Rate
Set monthly; the key lending benchmark.
Reserve requirement ratio
RRR changes adjust banking-system liquidity.
China growth & stimulus
Drives commodity demand and risk-sensitive currencies.

PBoC FAQ

What is the difference between CNY and CNH?: CNY is the onshore renminbi, traded in a managed band around the PBoC's daily fix. CNH is the offshore renminbi, traded more freely outside mainland China.
What is the daily fix?: Each trading day the PBoC sets a reference rate for the renminbi against the dollar. The onshore currency trades in a band around it, so the fix is a closely watched signal of policy intent.
How does the PBoC affect global markets?: As the central bank of the world's largest commodity importer, its liquidity and currency decisions ripple into commodity prices, the Australian and New Zealand dollars, and Asian FX.

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