{"id":11636,"date":"2022-03-11T09:00:30","date_gmt":"2022-03-11T06:00:30","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=11636"},"modified":"2026-05-26T10:57:06","modified_gmt":"2026-05-26T07:57:06","slug":"how-to-trade-usd-cnh","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2022\/03\/11\/how-to-trade-usd-cnh\/","title":{"rendered":"How to Trade USD\/CNH"},"content":{"rendered":"\n

The USD\/CNH (US dollar against the Chinese yuan) is quite a specific currency pair<\/a> in Forex<\/a>. This article is devoted to its trading peculiarities and formation of its exchange rate.<\/p>\n\n\n\n

You can visit the RoboForex Market Analysis<\/a> webpage for the latest forex forecasts<\/a>.<\/em><\/p>\n\n\n\n

<\/span><\/a>Some info about China and yuan<\/span><\/h2>\n\n\n\n

People’s Republic of China is an Eastern Asian country, number three in the world in terms of area and number one in terms of population. Since 1949, the country has been ruled by the Communist party of China.<\/p>\n\n\n\n

The Chinese economy is based on both planned distribution economy and market economy alongside numerous foreign investments. Today China is the country with the second-largest GDP<\/a> after the US. Many experts expect it to become number one quite soon.<\/p>\n\n\n\n

China is the largest manufacturer and exporter of various goods. Thanks to a wide spectrum of economic connections, the Chinese yuan is quite a demanded currency. It is necessary for economic operations with the country. It is included in the special drawing rights basket of the IMF, which makes it a reserve currency.<\/p>\n\n\n\n

Inside the country, the yuan is called “people’s money”. The monetary policy is carried out by the Central bank of the country, People’s Bank of China. All changes of the official exchange rate of the yuan are tracked and regulated by the Bank and only partially depend on market conditions.<\/p>\n\n\n\n

Before 2005, the exchange of the yuan used to be strictly bound to the US dollar rate: 1 USD = 8.27 CNH. Now the rate is bound to a special currency basket comprised of currencies of 13 countries. The yuan is traded in Forex<\/a> but its fluctuations are limited by 2% of the exchange rate set by the Chinese Central bank. Since 2010, the USD has been fluctuating between 6 and 7 CNH .<\/p>\n\n\n\n

\"USD\/CNH<\/a>
USD\/CNH price chart<\/em><\/figcaption><\/figure>\n\n\n\n

<\/span><\/a>USD\/CNH peculiarities<\/span><\/h2>\n\n\n\n

The peculiarity of the yuan is that it has two parallel exchange rates: its official domestic rate (USD\/CNY) and international one (USD\/CNH). The rate with the ticker CNH was introduced by the Central bank of China and the government of Hong Kong to attract international investors. The official yuan rate (CNY) is firmly regulated by the government and meant only for use inside the country.<\/p>\n\n\n\n

People’s bank of China publishes the official exchange rate (Central Parity Rate) every day. This is the ratio of the yuan and the currency basket. USD\/CNY and USD\/CNH fluctuations cannot exceed 2% of it. When the border of the range is reached, the Central Banks intervenes, regulating further movements of the currency.<\/p>\n\n\n\n

<\/span><\/a>Trading characteristics of USD\/CNH<\/span><\/h3>\n\n\n\n