USDCNH The official currency in China is the renminbi often abbreviated to RMB, while the term Yuan can be used to describe the base unit of the Chinese currency. Recent changes to protocols by Chinese authorities have led to the introduction of a deliverable offshore Renminbi currency market, commonly referred to as "CNH".
Since 2010, China trades with two different exchange rates depending on location. When trading onshore it is referred to as CNY, while offshore trading is known as CNH. The CNH was introduced after the foreign exchange reforms were introduced in 2010, resulting in China internationalising their currency and creating an unrestricted, freely tradable currency between offshore entities.
The CNH market is growing rapidly and gradually, restrictions are being lifted, creating a great opportunity for Forex traders. Rapid growth and international recognition of this currency has proven to the world that it has become a major player on the Financial Market.
With continuous foreign venture capital investment and vast international exporting volume, the Chinese currency is becoming more influential on the Forex Markets. Further to the setup of off-shore Chinese currency, clearing banks in Europe, the Middle-east, Africa and the US, have realised the potential opportunities of trading the newly globalised currency. At ICM Capital, we are excited to offer this opportunity to trade for all our clients.
|Instrument||Description||Contract Size||Margin Req.||Mini & Max Lots Per Trade||Variable Spread|
|USD/CNH||US Dollar vs. Chinese Renminbi||USD 100,000||5,000 USD||0.01 lot – 20 lot||Minimum 17, Average 20|
The CNH exchange rate is driven by private supply and demand for the currency; however the Chinese government limits the supply of the CNH, thus, demand usually exceeds supply. Although there is controlled variability, the core value is affected by economic forces of the market. Traders should pay attention to the Chinese central banks' actions as they influence the RMB exchange rate.
Existing clients will be eligible to trade USD/CNH which can be found in the product list on the ICM Capital trading platform. Simply open a Live Account with us to take advantage of this emerging currency pair on our innovative MT4 Platform today.