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China's SAFE increasing scrutiny of FX purchases, closing loopholes

Reports from China of new procedures for buying foreign currency

  • Chinese residents now need to fill an application form indicating the purpose of foreign exchange purchases
  • There are 11 purposes residents can check, such as travel & medical care

BUT ... Chinese residents are excluded from purchasing foreign currency for overseas purchases not yet open to domestic individuals, such as overseas housing and insurance with investment returns

SAFE announced that the more stringent supervision over the purpose of foreign exchange purchases would help close loopholes in the current system

The $50, 000 limit still seems to be in place:

  • Xie Yaxuan, chief economist at China Merchants Securities said that the unchanged annual quota of $50,000 for foreign exchange purchases by individuals signals that the government does not intend to limit such currency sales

(via China Daily)

Also, Bloomberg link here

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SAFE is the State Administration of Foreign Exchange

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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