Onshore RMB refers to: the central bank authorized China Foreign Exchange Center to announce the central parity of RMB against USD, EUR, JPY and HKD on that day as the reference price in the inter-bank spot foreign exchange market and the exchange rate traded on the bank counter on that day, which is called onshore RMB.

Offshore RMB refers to: the exchange rate at which the central bank opens Hong Kong and other countries to conduct RMB transactions is called offshore RMB, and the offshore RMB transaction (CNH) implemented in China Mainland and Hong Kong on 20 10 has generally referred to offshore RMB transactions.

Extended data:

The difference between the two

The onshore RMB market has a long development time, large scale and many controls, and the onshore exchange rate is greatly influenced by the central policy. Offshore, on the other hand, is mainly influenced by international factors. Usually, the offshore RMB market can fully reflect the supply and demand of RMB in the market. Related reading: the difference between offshore RMB and onshore RMB

Although they are two markets, they will also affect each other. When offshore is weaker than onshore, for example, 6.8 yuan RMB is needed to exchange 1 USD in China and 7.5 yuan RMB is needed to exchange 1 USD in Hongkong, then exporters will tend to trade in offshore market, because the earned USD can be exchanged for more RMB. In this process, exporters sell dollars in the offshore market, and buying RMB will make the offshore RMB appreciate.

Baidu Encyclopedia-Offshore RMB

Baidu encyclopedia-RMB exchange rate