Overview:

This currency pair represents the US Dollar and Chinese Renminbi, generally known as the Yuan this currency pair has featured more heavily in recent times due to the US-China Trade War in which the Chinese Government has let the Yuan depreciate so that the country’s exports are cheaper to countries all around the world. This currency pair tells traders how many Chinese Yuan are needed to buy one US Dollar. Traders should be aware of any developments on the US-China Trade War as this will affect the price of this currency pair.

Key Facts:

USD

• The Central Bank of the United States is the Federal Reserve (sometimes referred to as the Fed).
• USD is the main global reserve currency and the United States of America (U.S.A) is the largest economy in the world.
• The (US Dollar) USD is used to price most global commodities (including Oil and Gold).
• The US has a well developed economy with high productivity levels and is fuelled by huge natural resources.
• The International Monetary Fund (IMF) states that the US Gross Domestic Product (GDP) is $15 trillion and makes-up c. 23% of global GDP to exchange rates.

CNY

• The Central Bank of China is the People’s Bank of China
• The Renminbi is one of the world’s global reserve currencies and the CNY is also referred to as the 'Redback'.
• Its position of central planning to a market economy has increased foreign participation through trade and is 6th most traded currency in 2019.
• Renminbi currency futures are traded at the Chicago Mercantile Exchange and settled at the exchange rate published by the People’s Bank of China.