The USD/CNH pair represents the USD and the offshore Chinese yuan. In China, the Chinese yuan is denoted as CNY but is not convertible with overseas currencies. In USD/CNH pairing the base currency is USD and the quote currency is the CNH.
HKEX launched the USD/CNH futures in September 2012. It was the world's first deliverable RMB currency futures product to be quoted, margined, and settled in RMB. RMB is the abbreviation for Ren Min Bi, and is the official currency of China. The base unit for RMB is Yuan just as Dollar in USD. This is the currency system in China. The USD/CNH currency pair provides greater capital efficiency and flexibility for managing exposure to the expanding offshore RMB market. The USD dates back to 1792, when the US dollar was created by the United States Congress as the official currency of the country. It serves as legal tender in many countries and it is the most widely used currency in the world both in circulation and reserve. The US dollar forms part of the majors as it pairs with all main currencies in the foreign exchange market (forex). The Chinese Yuan Renminbi (CNY) is the official currency of mainland China. The term Chinese Yuan Renminbi refers to the currency used in the People’s Republic of China. There are two separate terms, as a yuan acts as China’s unit of account for its financial economy and system, which represents a single unit of money. On the other hand, the term renminbi is the official name of the currency itself.
