CNY/USD Historical Price Charts – Chinese Yuan Price History
Arslan Butt • 3 min read
The CNY is an abbreviation for the Chinese Yuan Renminbi, which is the general term for the currency of the People’s Republic of China (PRC). The Renminbi (or Yuan) is made up of 10 jiao and 100 fens. It is referred to as RMB or represented with the symbol ¥. It is also worth mentioning that Yuan and Renminbi are viewed as a unit, but with two separate terms, because the Renminbi is the official name of the currency, which was introduced by the Communist People’s Republic of China in 1949. So, you could call it “the people’s currency.” Yuan is the name of a unit of the renminbi currency. So, things cost 1, 10 or 100 yuan, for example, rather than Renminbi. Anyhow, the Renminbi is issued by the People’s Bank of China, which is controlled by the PRC, whereby the Yuan is issued in banknote (bills) in the following denominations: one, five, 10, 20, 50, and 100.
On the USD front, USD is one abbreviation for the United States dollar, which is the official currency of the United States of America. One United States dollar, or US dollar, is divided into 100 cents, or into 1,000 mills for accounting and taxation purposes (symbol: ₥). The currency is usually represented by the symbol $ or US$, in order to differentiate between it and other dollar-based currencies. It is also worth mentioning that the US dollar, sometimes referred to as the greenback, is the most-used currency in activities across the world. As a result, this currency is considered a benchmark currency. Apart from this, the US dollar is accepted as the official currency in many countries outside of the US.
Current CNY/USD Price: $
Historical Data Tables:
CNY/USD Historical Price Data
What is the CNY/USD (Chinese Yuan Renminbi/US Dollar)?
The CNY/USD currency pair is becoming popular with time, and the reason for this could be associated with a high interest in the Chinese economy. The CNY/USD pair refers to the Chinese Renminbi currency and the US Dollar. The Renminbi is the official Chinese currency (sometimes referred to in trading as the RMB) as we have already mentioned. Each unit of the currency is known as a Yuan.
Let’s talk about the pair’s specialty; this currency pairing is the most popular one containing the Chinese currency and the 8th most-traded on the international Forex market. When combined with the US Dollar, it is considered to be an exotic pairing. That’s why it is best suited to only the most experienced investors.
Why Do Traders Choose the CNY/USD Pair?
It is worth recalling that the CNY/USD pair is an exotic currency pair, as it twins the major US currency with an emerging one, the Chinese Yuan. As a result of less trading of this pair, compared to the Cross and Major pairs, there is less market liquidity, which leads to a higher cost of trading. However, there are many benefits to choosing to trade the exotic CNY/USD pair.
Predictability – As a result of lower trading volume and slower trading pace in the CNY/USD currency pair, the price action can be predicted more quickly, making long-term trades a possibility.
Fewer traders – the CNY/USD currency pair trades have a higher cost compared to other major pairs. When combined with the lower exposure of this pairing to the global Forex trade community, it means that speculators and casual investors are excluded from the market. This results in fewer traders.
Opportunities for diversification – The CNY/USD currency pair trades normally attract more experienced investors who want to develop a more diverse portfolio of investments. Thus, the CNY/USD pair enables them to try a more unusual market, which tends to bring a greater profit.
Challenging opportunities – The CNY/USD currency pair is considered one of the unique pairs in the forex market, which provides a more challenging opportunity for experienced Forex investors and enables them to build their plans and formulas to achieve a higher level of trading success.
Major Factors that Influence the CNY/USD Currency Pair
The CNY/USD currency pair is normally affected by factors that impact the value of the China Yuan Renminbi and the US Dollar in relation to each other and other currencies. Therefore, the interest rate differential between the People’s Bank of China and the Federal Reserve (Fed), will significantly influence the value of these currencies compared to one another. However, traders keep an eye on the economic calendars, as high impact news has a major effect on the CNY/USD currency pair.