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Renminbi Withdrawals Allowed on Forex Cards
Holders of forex-enabled bank cards issued outside China are now entitled to make withdrawals in renminbi, the country's foreign exchange authorities announced yesterday.

Promoting the use of forex cards "not only comes in line with the needs of the public, but also helps reduce cash transactions and restrict illegal foreign exchange trading," the State Administration of Foreign Exchange (SAFE) said.

Bank cards issued outside China are now can entitled to make renminbi withdrawals, not in foreign currencies, either from automatic teller machines or over the counter.

Holders of domestically-issued forex cards can either withdraw renminbi or foreign currencies at bank outlets, but cannot withdraw foreign currency from ATMs, it said.

When traveling abroad, such cardholders are subject to a US$1,000 daily withdrawal limit and a US$5,000 monthly ceiling to "prevent card users from cashing overseas for illegal purposes," SAFE said.

The circular also stipulates that domestically-issued forex cards can only be used for overseas payments under the current account, not the capital account.

(China Daily May 27, 2003)

Forex: China Yuan Drops Slightly
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