Euro – Offshore Chinese Yuan

Offshore yuan (bank code: CNH) is yuan placed on the accounts of banks of other countries. Traded mostly in Hong Kong. The main difference from the territorial yuan is that the People’s Bank of China cannot directly control its rate.
The euro is the official currency of 19 countries of the “eurozone” with a population of about 340 million Europeans. In November 2013, the cash circulation was 951 billion euros, which made this currency the owner of the highest total value of cash circulating around the world, outperforming the US dollar in this indicator.
The euro was introduced to the world financial markets as an accounting currency in 1999, and on 1st January 1 2002, banknotes and coins were put into circulation. The euro replaced the European currency unit (ECU), which was used in the European monetary system from 1979 to 1998, in a ratio of 1:1. The issuer is the European Central Bank.
Dynamics of the EUR/CNH pair are determined by the dynamics of the USD/CNH and EUR/USD rates. Accordingly, it is determined by the exchange rate policy of the People’s Bank of China, the state of trade relations between the US and China, as well as the difference in the monetary policy of the FRS and the ECB, which determine the rate of the EUR/USD pair.