Yuan renminbi

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The currency of the People's Republic of China (PROC).

Commonly abbreviated to 'yuan' or to 'renminbi'.

More strictly, the full term 'yuan renminbi' is analogous to the term 'pound sterling':

one yuan being one unit of the currency (like a pound) and renminbi being the currency itself (like sterling).

The yuan is a heavily regulated currency, but as part of the process of internationalising the currency the Chinese authorities have allowed a market in offshore deposits to develop.

The currency traded offshore is known as the renminbi CNH whereas the onshore currency is known as the renminbi CNY. The CNH and CNY will tend to trade at different rates.

An external market for borrowing CNH has developed and is known as the “dim sum” market.

See also