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	CIRCULAR OF PEOPLE'S BANK OF CHINA ABOUT FOREIGN CURRENCY BANKNOTES ADMINISTRATION

	(No. 376 [2001] of People's Bank of China promulgated on November 21, 2001, which shall come into force as of December 1, 2001)


SUBJECT : INDIVIDUALS; FOREIGN CURRENCY BANKNOTES
ISSUING DEPARTMENT : PEOPLE'S BANK OF CHINA
ISSUE DATE : 11/21/2001
IMPLEMENT DATE : 12/01/2001
LENGTH : 493 words
TEXT :

In order to reduce the circulation of foreign currency banknote within the territory, and facilitate foreign exchange sales of resident individuals and transfers within the banking system of legitimate foreign currency (including foreign currency banknote and foreign exchange), the People's Bank of China (PBC) has decided to adjust relevant policies as follows:

I. The difference between listed exchange buying/selling rates of US dollar of each foreign exchange designated bank and buying & selling average rates published by the PBC shall not exceed 0.16%. The difference between banknote buying rates and corresponding foreign exchange buying & selling average rates shall not exceed 1%. The banknote selling rates shall be equal to the foreign exchange selling rates. Listed exchange rates of other currencies shall be formulated according to Circular on Foreign Exchange Market after Foreign-funded Enterprise being Incorporated into the Banking System of Foreign Exchange Sales and Purchases ( Huiguohanzi No. 183[96]).

II. Appropriately relax the limitation on transfers between foreign currency accounts of the same resident individual. Besides transfers between different domestic foreign currency accounts of the same resident individual, each bank may conduct transfers between domestic foreign currency account of a resident individual and of his/her parents, spouse and children. When making transfers, the resident individual shall present valid ID certificates as required to verify the foreign exchange accounts belonging to the same person or belonging to a person and his/her parents, spouse or children.

III. When making transfers between domestic foreign currency accounts for its clients, each bank shall make a record of large sum transfers. Each bank shall report domestic transfers more than equivalent of US$ 10,000 (included) on a monthly basis to the local branch of State Administration of Foreign Exchange (SAFE).

IV. To facilitate foreign exchange sales of resident individuals, each bank may extend its outlets for buying foreign exchange appropriately according to the development of local economy. Each outlet that is qualified to draw foreign currency savings of individuals and has set up sound internal control mechanism and operational procedures, with approval of its upper level, may apply for the business of buying foreign currencies from individuals at local branch or sub-branch of the PBC. When examining the application, concerned branch or sub-branch of the PBC shall take into consideration of the operating capability of the applicant and of the outlet distribution of local banks, and consult with local branch of SAFE.

V. Branches of SAFE shall supervise the outlet authorized to buy foreign currencies from individuals as those who authorized to buy foreign currencies from enterprises. They shall strengthen the supervision of related statistics and businesses.

VI. This circular shall take into effect as of December 1, 2001. In case of any contradiction with previous regulations, this circular shall prevail. On receiving this circular, each branch of SAFE shall transmit it to the sub-branch of SAFE, commercial banks (including foreign-funded banks) under its jurisdiction without delay. Any problem in the implementation shall be reported to SAFE promptly.