China lets travellers take up to 20,000 yuan out of country -
Thursday, December 2, 2004 3:57:30 AM
afxpress.com
(Updating with further comment, details)
BEIJING (AFX) - The People's Bank of China, the country's central bank, said in a statement that travellers will now be allowed to take more yuan into and out of the country, raising the ceiling to 20,000 yuan from the previous 6,000 yuan limit
In the statement published on its website, the central bank said the new standard, which will be effective from Jan 1, 2005, is being set to meet increasing demand as more and more Chinese people travel abroad for study, travel and business purposes
"Given China's healthy economic development, growing purchasing power, increasing international exchanges and stable yuan exchange rate, the demand for renminbi, or yuan, is increasing in neighboring countries and regions and it is necessary to allow people to carry more yuan across borders," the central bank said in the statement
The statement quoted an unnamed central bank official as saying that the move is unlikely to have any negative impact to China's economy, especially on money supply
The official said China has yuan clearing agreements and trade contracts with major neighboring countries, which will guarantee that Chinese yuan will flow back to the country again
The central bank also said that its monetary policy decisions will from now take into account the financial situation of China's neighboring countries
"The yuan has already become a regional currency that is circulated in our neighboring countries and regions," the central bank said in the statement |
