For: finance teams, importers, procurement managers and business owners paying suppliers in China who keep seeing the codes CNY and CNH and want to understand what they mean for a real payment.
Key takeaways
- CNY and CNH are the same currency - the renminbi (RMB) - not two different currencies.
- CNY is onshore renminbi (traded inside mainland China); CNH is offshore renminbi (traded outside the mainland).
- Two markets exist because China combines capital controls with a gradual push to internationalise its currency.
- The onshore and offshore rates usually track each other closely but can diverge against a third currency.
- What matters for your payment is the exact renminbi amount the supplier receives and the total you pay - confirmed on your quote.
- Availability, currency, documentation and settlement are route-, bank- and compliance-dependent and can change.
What are RMB, CNY and CNH?
The official currency of mainland China is the renminbi, abbreviated RMB. The yuan is the unit of the renminbi (the way "pound" is the unit of sterling). So RMB and yuan describe the same money, just as CNY is the code you will see in banking systems.
Where it gets confusing is that the same renminbi trades in two separate markets, and the market is signalled by the code:
- CNY - onshore renminbi, traded inside mainland China. According to the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE), the onshore market is closely managed: the currency moves within a daily trading band around a reference rate the central bank publishes each morning.
- CNH - offshore renminbi, traded outside the mainland, mainly in Hong Kong and other international centres. Offshore renminbi generally responds more to market supply and demand.
They are the same currency with the same face value. A supplier is not paid in a different money depending on the code; the code tells you which market the renminbi was sourced or priced in.
Why does China have two renminbi markets?
Mainland China maintains capital controls - rules that limit how money moves in and out of the onshore financial system - while at the same time encouraging wider international use of the renminbi. Those two goals pull in opposite directions.
The offshore (CNH) market, which developed with support from the Hong Kong Monetary Authority and others, resolves the tension: it lets businesses and banks outside the mainland hold, trade and settle renminbi without directly entering the controlled onshore system. That is why an overseas provider often accesses renminbi through the offshore market even when your payment ultimately lands in a supplier's onshore mainland bank account.
Onshore CNY vs offshore CNH: a practical comparison
| Feature | CNY (onshore) | CNH (offshore) |
|---|---|---|
| Where it trades | Inside mainland China | Outside the mainland (e.g. Hong Kong, Singapore, London) |
| Who oversees it | PBOC and SAFE, within a managed daily band | More market-driven, subject to offshore liquidity and policy |
| Typical access for overseas buyers | Indirect - via approved routes and partners | Common route for banks and providers outside China |
| Rate behaviour | Managed reference rate plus band | Can diverge from CNY against third currencies |
| Relevance to your payment | Often the currency the supplier ultimately receives onshore | Often the market your overseas quote is priced in |
Both usually sit very close to one another, but their values against a third currency such as the US dollar can move apart when offshore liquidity tightens or policy shifts. That gap is small most of the time - but it is the reason two businesses can see slightly different "renminbi rates" on the same day.
Can a supplier invoice be denominated in renminbi?
Yes - many Chinese suppliers can and do invoice in renminbi. When they do, the invoice is simply denominated in RMB; the CNY/CNH distinction is about the market your funds pass through, not about a different invoice currency. For a related deep-dive, see our guide to RMB invoicing for international businesses.
Before you accept a renminbi-denominated invoice, confirm three things:
- the exact renminbi amount the supplier must receive;
- the beneficiary account that is authorised to receive it;
- the funding currency and total cost on your side, shown on a quote.
How do the two rates affect what you pay?
When you fund a payment in your local currency or in US dollars, your provider converts it into renminbi to settle the supplier. The conversion may reference the onshore or the offshore market, so the headline rate you see online (usually a mid-market reference) is rarely the rate you actually get.
The reliable comparison is always the same: the total amount leaving your account against the exact renminbi amount the supplier receives, including any fees. A transparent quote should show the funding amount, the renminbi receive amount, the applied rate, the fees and an indicative settlement window before you confirm.
Need to pay a verified supplier in China? Learn how KeyBS Pay supports eligible international business payments to China, with the renminbi receive amount and fees shown on your quote. See the Pay to China service.
Settlement and beneficiary considerations
For most Africa-to-China and other cross-border supplier payments, the renminbi is delivered into the supplier's onshore mainland bank account. Cross-border renminbi clearing is commonly routed through the Cross-Border Interbank Payment System (CIPS), sometimes alongside SWIFT messaging, depending on the banks involved.
Whatever the route, the beneficiary details must be correct and consistent:
- the supplier's registered Chinese legal name (which can differ from its trading or website name);
- the beneficiary bank account name and number;
- the bank identifiers your provider requests for onshore clearing.
Treat any change of bank details during a live order as a new verification event, and confirm it through a channel you already trust. To check a counterpart before funding, see supplier verification.
Compliance and documentation implications
Renminbi cross-border payments are processed against the underlying trade. In practice that means your commercial documents - invoice, contract or purchase order, and payment purpose - should be consistent, and providers or banks may request more depending on the route, amount, jurisdiction and risk profile. We cover this in detail in China supplier payment documentation.
A practical example
Suppose a Ghanaian importer receives a renminbi-denominated invoice from a supplier in Shenzhen. The importer funds the payment in GHS or USD. The provider prices the conversion - in practice, drawing on offshore renminbi liquidity - and quotes: the funding amount, the exact renminbi the supplier will receive onshore, the applied rate, itemised fees and an indicative settlement window. The importer verifies that the registered supplier, the invoice party and the beneficiary match, then funds. The renminbi is routed to the supplier's mainland account. This illustrates the mechanics; it is not a live quote or a promise that any particular route is available.
Common mistakes to avoid
- Assuming CNY and CNH are different currencies - they are the same renminbi in different markets.
- Comparing an online mid-market rate to your quote - compare the renminbi the supplier receives instead.
- Ignoring a small onshore/offshore rate gap on large or repeated payments.
- Accepting a beneficiary whose name does not match the registered supplier without explanation.
- Acting on a mid-order change of bank details without independent confirmation.
Frequently asked questions
What is the difference between CNY and CNH?
CNY and CNH are not two different currencies. They are two market codes for the same currency, the renminbi. CNY is onshore renminbi traded inside mainland China under PBOC and SAFE rules; CNH is offshore renminbi traded outside the mainland, mainly in centres such as Hong Kong. Their rates against other currencies can differ slightly because the markets have different liquidity and rules.
Can an overseas company pay a Chinese supplier in renminbi?
In many cases yes. An invoice can be denominated in renminbi and settled to the supplier's mainland account, subject to eligibility, documentation, compliance review and the route your provider or bank can offer. Confirm the currency and settlement details on the quote before funding.
Is CNH the same as CNY?
Both are the renminbi. CNY generally describes the onshore market and CNH the offshore market. They usually track each other closely, but the rate you are quoted can differ depending on which market your provider prices in.
Which renminbi rate applies to my supplier payment?
The rate that applies is the one on your payment quote for the specific route and moment, not an online reference rate. Because onshore and offshore pricing can differ, compare the total you pay against the exact renminbi the supplier receives.
Why do international banks quote CNH rather than CNY?
Because the mainland maintains capital controls, most providers outside China access renminbi through the offshore (CNH) market - so an overseas quote is often based on CNH even when the funds settle to an onshore account.
Pay your supplier in China
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About the author
The KeyBS Pay Editorial Team publishes practical guidance for businesses that pay and collect across borders. KeyBS Pay is an Africa-focused B2B financial-technology platform providing cross-border payment, FX, treasury, supplier verification and international trade-payment tools. Our articles are written for operators and finance teams and reviewed for compliance accuracy before publication.
Compliance review: Doreen Anokyewaa Appiah, Director of Compliance. Last reviewed: 16 June 2026.
Important information
KeyBS Pay is a technology platform and not a bank. Payment, foreign-exchange and trade services are provided directly or through regulated financial-institution partners where applicable, and are subject to eligibility, jurisdiction, KYB/KYC, AML review, documentation and partner-route approval. Coverage, currencies, funding methods, pricing and timing are route-dependent and can change. Supplier verification and escrow reduce particular risks but do not eliminate fraud, performance, product-quality or delivery risk. This article is general information about how renminbi supplier payments work; it is not legal, tax, accounting or financial advice, and it does not describe the rules of any specific bank or authority. Confirm current requirements with your provider, your bank and a qualified adviser before you transact.
Sources and further reading
- People's Bank of China (PBOC), accessed 16 June 2026.
- State Administration of Foreign Exchange (SAFE), accessed 16 June 2026.
- Cross-Border Interbank Payment System (CIPS), accessed 16 June 2026.
- SWIFT, accessed 16 June 2026.
- Hong Kong Monetary Authority - offshore renminbi business, accessed 16 June 2026.
- KeyBS Pay - Pay to China, accessed 16 June 2026.
- KeyBS Pay - FX and Treasury, accessed 16 June 2026.
- KeyBS Pay - Supplier Verification, accessed 16 June 2026.
