Description
The UDS/RMB (Onshore) represents the amount of onshore Chinese yuan (CNY) required for one unit of US dollar. The USD/CNY (onshore) exchange rate is influenced by various factors, including the monetary policies of the People's Bank of China (PBOC) and the US Federal Reserve (Fed), trade relations between the two countries, global economic trends, and geopolitical risks. A lower USD/CNY rate indicates a stronger yuan, which helps reduce import costs but may weaken the competitiveness of Chinese export products. Conversely, a higher USD/CNY rate suggests a weaker yuan, benefiting export growth but increasing import costs.
Note: The main difference between onshore yuan (CNY) and offshore yuan (CNH) lies in their trading location and capital control. Onshore yuan (CNY) is traded within mainland China and is strictly regulated by the People's Bank of China (PBOC), while offshore yuan (CNH) is traded outside of China (such as in Hong Kong) and is not directly controlled by the PBOC.