Wednesday, September 9, 2015

China restricts foreign currency exchange for its citizens

The State Administration of Foreign Exchange (SAFE) in China recently issued directives to restrict foreign currency exchange for individuals who are trying to acquire US dollars for overseas acquisition of properties and investment. In China individuals are only allowed to exchange and wire out up to $50,000 US dollars a year. The new restrictions and government oversight will make outbound investment by individual Chinese citizens more difficult to exchange and transfer foreign currencies.  EB-5 investors in China usually require assistance from their friends and relatives to exchange US currencies.  There are also new enhanced and tightened measures targeting Chinese businesses that are investing in foreign countries.

The new measures of SAFE reflect China's economic slowdowns and problems with its financial markets. To learn more about the Chinese market and government policies issues, contact us today.

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