** One China , Two Yuan : "the Difference Between CNY and CNH" ** almost every large economy in the world runs on single currency but here comes CHINA which uses two currency and here is why? >China operates a unique dual currency system. one is onshore(CNY) and other is offshore(CNH) Yuan. >CNY & CNH are different version of same currency. Renminbi(RMB) is the "brand name" OF CHINA'S currency. both are same denomination of same RMB. >the CNY is strictly controlled within China while CNH is used for global trades in foreign countries. >government of china has control over CNY to tackle any kind of major financial stability (domestic) & CNH is totally dependent on global trades(not controlled by government) like total supply and demand. >both currency moves in tandem meaning value moves side by side but sometimes they varies but with slight difference. >this move is basically because China want to introduce it's currency to the world just like US DOLLAR. >while introducing the YUAN globally China also wants to maintain it 's currency Without risking domestic economic shocks by introducing CNY. >domestic shocks could be inflation, major company collapsing, people losing savings and jobs etc.