About the Chinese Yuan
The renminbi is the currency of mainland China; the yuan is its unit. It is issued by the People's Bank of China. Each morning the central bank sets a central rate against the US dollar, and the onshore yuan may trade up to 2% either side of it.
The yuan trades in two markets. CNY is the onshore yuan, traded inside mainland China under its capital controls. CNH is the offshore yuan, traded mainly in Hong Kong since 2010 and freely available to foreign companies. They are the same currency, but their rates can differ, especially when markets are under stress.
China is the world's largest exporter, and more of its trade is now settled in yuan. Individuals in China can buy up to the equivalent of US$50,000 in foreign currency a year, and larger flows need approval or supporting documents.
Paying in CNY
- CNAPS code
- China does not use IBANs. A yuan payment to a mainland account needs the account number and the recipient bank's 12-digit CNAPS code, together with the bank's SWIFT/BIC code for payments from abroad.
- Names must match
- Chinese banks check the recipient's name against the account exactly. For a company, use its registered name in full, in Chinese characters or its official English name as the bank holds it.
- Trade documents
- Cross-border yuan payments into and out of mainland China must be backed by a genuine transaction, such as a contract for goods or services. The recipient's bank may ask for invoices or contracts before it credits the funds.
- Onshore and offshore
- Yuan bought offshore (CNH) can be paid into mainland accounts for trade settlement. Cross-border yuan payments between banks clear through CIPS, the Cross-border Interbank Payment System launched in 2015.
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