Description
The USD/CNH exchange rate reflects the amount of offshore Chinese yuan (CNH) required for one U.S. dollar (USD). The USD/CNH rate is influenced by the policies of the People's Bank of China (PBOC), global economic trends, U.S.-China trade relations, and geopolitical events. Unlike the onshore yuan (CNY), CNH is freely traded in offshore markets like Hong Kong, without direct control from the Chinese government, allowing for more flexible exchange rate movements.
A lower USD/CNH rate indicates a stronger yuan, which helps reduce China's import costs but may weaken its export competitiveness. Conversely, a higher USD/CNH rate reflects a weaker yuan, which generally supports exports but increases import costs.