- The CNH spot market only developed from 2010: it has been experiencing a meteoric rise.
- In 2016, according to SWIFT, the CNH was the fifth most used currency in international payments. Also, note that London is the second-largest market for CNH (after Hong Kong). However, since then, it didn’t advance much further in usage as many Chinese companies trade in US, EUR or other currencies.
As local players don’t always get attractive FX rates, it can be better for European companies to pay or invoice in CNH and hedge themselves, compared to have the Chinese counterpart handle the FX flows.
- One could also encounter the notations CNO (onshore CNY) and RMB (renminbi, the Chinese word for “money“).