How to Transfer CNY from Onshore to Offshore Accounts A Clear Guide on Procedures and Risks

How to Transfer Onshore RMB to Offshore Accounts Opportunities and Challenges Unveiled

In recent years, as China’s financial markets have gradually opened up, more investors and businesses are paying attention to the channels and methods for cross-border RMB flows. A key question many are asking is how can onshore RMB CNY, which circulates within mainland China, be transferred to offshore RMB accounts CNH, which are used outside the mainland? This question has become especially relevant in today’s volatile global economic environment, where exchange rates fluctuate frequently. Understanding how to move RMB across borders efficiently and legally is not only important for personal asset management but also crucial for corporate financial operations.

So, how exactly can onshore RMB be transferred to offshore accounts? What opportunities and risks does this process entail? Let’s take a closer look based on recent policy developments and market trends.

1. Common Channels for Cross-Border RMB Flows

Currently, there are several recognized ways to transfer RMB from onshore to offshore accounts

1. Cross-border Trade Settlement

This is the most common and legally compliant method. Companies can use RMB for trade settlements with overseas partners, thereby legally transferring RMB abroad. This method is not limited to import and export businesses-it’s increasingly used in service trade and cross-border e-commerce as well.

2. Capital Account Transfers Approved by the SAFE

This includes overseas direct investment ODI and Qualified Domestic Institutional Investor QDII programs. These typically require approval from the State Administration of Foreign Exchange SAFE and involve more complex procedures. However, once approved, they allow relatively free cross-border movement of funds.

3. Annual Convenience Quota for Individuals

According to regulations set by the SAFE, each Chinese resident has an annual foreign exchange purchase quota of USD 50,000. While this quota is mainly for converting RMB into foreign currencies, individuals can also use it to transfer RMB directly overseas for purposes such as studying or traveling, via bank channels.

4. Fund Transfers Between Offshore RMB Accounts

If you already have an offshore RMB account, you can transfer funds across borders via banking systems. However, such transfers must be based on real transactions and cannot be used purely for arbitrage or money laundering.

2. Recent Policy Developments and Market Changes

Since 2025, China has continued to promote two-way openness in its financial markets. For example, the People’s Bank of China has renewed currency swap agreements with several central banks around the world, further encouraging the use of RMB in international trade and investment.

The RMB’s share in global payments has also increased. According to the latest data from SWIFT, the RMB remains consistently among the top ten most-used currencies for global payments, reflecting growing international acceptance.

At the same time, regulators are strengthening oversight of cross-border capital flows. In mid-2025, the SAFE issued a notice requiring banks to tighten their scrutiny of large cross-border transactions to prevent abnormal capital outflows. This shows that while China continues to open up, it is also placing greater emphasis on compliance and risk control.

3. Opportunities Early Benefits of RMB Internationalization

For both individuals and companies, the increasing ease of cross-border RMB flows means more diversified asset allocation options and more flexible financial management.

For high-net-worth individuals with overseas investment needs, transferring RMB to offshore accounts helps hedge against exchange rate risks and diversify assets.

As more commodities are priced in RMB-such as the internationalized Shanghai crude oil futures contract-more overseas investors are beginning to accept the RMB as a transaction currency. This provides domestic companies with more practical scenarios and favorable conditions for using RMB in cross-border settlements.

4. Challenges Compliance Barriers and Exchange Rate Volatility

Despite the broadening of cross-border RMB channels, several challenges remain.

First, the compliance requirements are still relatively high. Whether it’s for individuals or companies, legal cross-border transfers of RMB require proper documentation-such as genuine trade contracts or investment agreements-which adds to the complexity of the process.

Second, exchange rate fluctuations remain a major risk. There is often a price difference between onshore RMB CNY and offshore RMB CNH, and this gap can widen significantly during periods of market uncertainty or policy ambiguity. While this can create arbitrage opportunities, it also exposes investors to potential losses.

Third, the uncertain global financial environment continues to affect the adoption of RMB internationally. Geopolitical tensions have led to varying degrees of acceptance of RMB settlement across different countries. The dominance of the U.S. dollar in the global monetary system remains strong, which poses a challenge to the RMB’s internationalization.

5. Outlook Balancing Openness with Prudence

Looking ahead, the channels for cross-border RMB flows are expected to continue expanding. With the ongoing implementation of the Belt and Road Initiative and the inclusion of the RMB in the IMF’s Special Drawing Rights SDR basket, the RMB’s international standing is steadily rising.

At the same time, regulators are continuously refining relevant policies, aiming to strike a balance between openness and caution.

For ordinary investors and businesses, it’s important to closely monitor policy changes and plan cross-border fund flows rationally. Within the framework of compliance, one can better capture the opportunities brought by RMB internationalization. At the same time, it’s essential to enhance risk awareness, diversify investments, and avoid unnecessary losses caused by exchange rate fluctuations or policy shifts.

Conclusion

Transferring RMB from onshore to offshore accounts is more than just a financial transaction-it reflects a broader shift in the global financial landscape. In this evolving environment, there are both opportunities and challenges. The key lies in adapting to the changing dynamics and moving forward steadily.