In financial terms, "onshore RMB" and "offshore RMB" refer to two different RMB exchange rate markets. Onshore RMB is published daily by the China Foreign Exchange Trading Center authorized by the People's Bank of China as the reference exchange rate for the inter-bank foreign exchange market and counter transactions in Chinese mainland, and is mainly used for the official pricing of domestic RMB against international currencies. Because this market has a long history, large scale and is controlled by policies, exchange rate changes are often significantly influenced by China's monetary policy.

Offshore RMB mainly refers to offshore RMB transactions, especially in Hong Kong. Since 20 10 was implemented in mainland China and Hongkong, offshore RMB trading has represented the global RMB circulation and pricing. The offshore market is not directly bound by domestic policies, and its exchange rate changes reflect the demand and supply dynamics of RMB in the international market, and usually better reflect market expectations.

Although the onshore and offshore markets seem to be independent, there is interaction between them. When the offshore RMB exchange rate is weak, for example, compared with the onshore market, exporters may choose to trade in the offshore market because they can buy RMB at a lower exchange rate. This will lead to the appreciation of offshore RMB, reflecting the changes in market supply and demand. Generally speaking, understanding these two markets is very important for analyzing the international status of RMB and global financial dynamics.