What does offshore RMB mean?

Offshore RMB, also known as CNH or Chinese Yuan, refers to the Chinese currency that is traded and held outside of mainland China. It is used in international trade and investment transactions and is commonly held in offshore accounts by foreign companies and individuals. Offshore RMB is important in global finance as it allows for the internationalization of the Chinese currency and facilitates cross-border trade and investment between China and other countries. It also provides access to the Chinese financial markets for foreign investors and allows for the use of RMB in international trade settlements. Offshore RMB is subject to different regulatory and trading conditions compared to onshore RMB, and its value is influenced by factors such as interest rates, economic policies, and geopolitical events. Overall, offshore RMB plays a significant role in the global financial system and is an important currency for international trade and investment.