Dim Sum anyone? – The internationalization of China’s RMB

China has transformed itself into one the world’s largest economies, second only to the U.S.   The development of China’s economy over the past decade and increased global trade have been the main drivers to RMB globalization.  The Renminbi (RMB) is the official currency of China.  Although RMB traded in the spot onshore market and offshore in Hong Kong are the same currency, it has different exchange rates due to different supply and demand conditions.  Separate currency codes have emerged to represent onshore and offshore RMB.  CNY is used to represent onshore RMB within China while CNH is used to represent offshore trading in Hong Kong. Continue reading