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China eases curbs on some foreign exchange trading

China eases curbs on some foreign exchange trading

China will begin allowing individuals and nonbanks to conduct limited foreign exchange transactions on a trial basis in Shanghai and Beijing, the government says.
The policy change, announced Thursday in state-run newspapers, is part of Shanghai's preparations to host the 2010 World Expo and to develop as an international financial hub, the State Administration of Foreign Exchange, or SAFE, said in a statement on its Web site.
China strictly controls foreign exchange trading, allowing such transactions on a limited basis for travel and business dealings. So far, such exchanges have been limited to banks.
The new policy will allow certain designated nonfinancial firms to engage in trading, SAFE said. It said the first entity to be given that authority is Shanghai Zhangjiang ICE Foreign Exchange, a joint venture between the local Zhangjiang Group and International Currency Exchange (Europe).
However, the policy sets limits on the amount of money that can be exchanged, with Chinese individuals allowed an annual maximum of US$50,000 and a daily limit of US$5,000.
Foreign expatriates will be allowed to buy up to US$5,000 worth of yuan per day and sell the equivalent of up to US$500, SAFE said.
Shanghai Zhangjiang ICE has two branches at the city's Pudong International Airport and one in a subway station, with others planned, the state-run newspaper Shanghai Daily reported. Unlike banks, most of which close at 5 p.m. or so, the company will keep its airport outlets open 24 hours a day.
Plans call for it to charge 50 yuan (US$7.30) per transaction, it said.


Updated : 2021-02-26 10:09 GMT+08:00