US Dollar – Offshore Chinese Yuan (USD/CNH)

Offshore yuan is yuan placed on the accounts of banks of other countries. Traded mostly in Hong Kong. The main difference from the territorial yuan is that the People’s Bank of China cannot directly control its rate.

United States Dollar (currency symbol – $, bank code: USD) is the US monetary unit, one of the main reserve currencies in the world. 1 dollar = 100 cents. The Federal Reserve System has the right of currency issue, performing the functions of the central bank in the United States. USD also has the status of state currency in some other countries (for example, the Marshall Islands, El Salvador).
Officially, the Chinese yuan is a free market currency, but not in practice. The People’s Bank of China has a significant influence on the dynamics of its course. Historically, this influence is directed toward its weakening. Without this, the economy of the Celestial Empire could significantly slow down. The introduction of US customs duties on the export of a number of Chinese goods will encourage the People’s Bank to further weaken its monetary unit. A high correlation between offshore and onshore yuan will contribute to the long-term growth of USD/CNH.