Yuan vs RMB vs CNY: what is the difference?

People use yuan, RMB, and CNY interchangeably when talking about the money of China, but each term has a precise meaning. Understanding the difference helps when reading prices, bank statements, and exchange rate quotes.

Renminbi (RMB) is the official name of the currency itself. The word means "people's currency" in Mandarin, and it was introduced by the People's Bank of China in 1948. When you refer to the currency of China as a whole, renminbi is the formally correct term, similar to how sterling refers to the currency of the United Kingdom.

Yuan is the basic unit of the renminbi. Prices are quoted in yuan, just as prices in the United Kingdom are quoted in pounds rather than in "sterling." One yuan divides into 10 jiao, and one jiao into 10 fen. In everyday speech, both inside and outside China, people almost always say yuan when talking about amounts of money. The symbol used for yuan is ¥, shared with the Japanese yen.

CNY is the ISO 4217 currency code for the yuan. You will see it in banking systems, foreign exchange markets, accounting software, and international wire transfers. When a converter or a bank shows USD/CNY, it means US dollars per Chinese yuan. CNY specifically refers to the onshore rate, the rate at which the yuan trades within mainland China, where the People's Bank of China manages it within a daily band around a central fixing.

CNH is the offshore yuan. It is the same currency, but traded outside mainland China, primarily in Hong Kong and other offshore hubs such as Singapore and London. Because the offshore market is not bound by the onshore daily trading band, CNH floats more freely. CNY and CNH usually trade very close to each other, but they can diverge during periods of market stress or when expectations about Chinese monetary policy shift. If you are exchanging money outside mainland China, the rate you receive is often closer to CNH.

Which term should you use? In conversation, say yuan. When referring to the currency system or policy of China, renminbi or RMB is more precise. On forms, invoices, and banking interfaces, use the code CNY, and be aware that quotes labeled CNH refer to the offshore rate. For a practical conversion between yuan and US dollars, try the yuan to USD converter, or go the other direction with theUSD to yuan converter. For a deeper look at the onshore and offshore rates, read our guide on CNY vs CNH.