Wed, August 20, 2008
SHANGHAI - China's foreign exchange regulator said Wednesday it will allow non-financial institutions in Beijing and Shanghai to offer currency exchange services to individuals.
The move will meet the increasing demand for currency exchange service among individuals, the State Administration of Foreign Exchange said in a statement on its website.
The agency said it is common international practice to allow banks, money changers and special merchants to provide exchange service to individuals to cater for various client groups.
In China, where currency exchange is currently only provided by banks, the trial programme will complement bank services, according to the regulator.
Under the trial programme, domestic individuals will be able to buy or sell foreign currency in authorised non-financial institutions within an annual quota equivalent of 50,000 dollars per person.
Foreign individuals can convert foreign currency into the Chinese yuan under the same annual quota of 50,000 dollars per person.
A foreign resident is also allowed to exchange the yuan equivalent of 500 dollars into foreign currencies each day.
Authorised institutions can either operate by themselves or act as an agent of banks. The exchange rates will be set in accordance with central bank rules, the statement said.
(Agencies)
