What is the most economic way to carry foreign exchange for traveling abroad?
At present, provisions on foreign exchange control in China are: Any person who goes abroad on private business such as traveling abroad, business affairs, and visiting relatives, can exchange 2,000 dollars or other currencies of an equivalent value according to the state-fixed price at Bank of China against passport and visa before exit; students studying abroad at his/her own expenses are also permitted to exchange abroad tuition and living expenses depending on relevant evidencing documents, excepts for the normal 2,000 dollars before each exit; any person who goes abroad on official duty can be also sold a certain amount of foreign exchange according to days staying in the country visited and distance of traveling according to relevant provisions.
If you travel abroad for a short term, you can exit with cash, due to the relatively small amount of foreign exchange required. If foreign exchange required exceeds 2,000 dollars, as long as the exceeded amount is not too much, you can apply to the bank for a holding certificate, and the bank shall charge 5 yuan for issuing such certificate. If you go abroad for visiting relatives, for safety you can apply for a bill of exchange before exit and carry it with you, except for a little change cash taken with you, because your living area abroad is relative fixed and your staying period there is relatively long. The bank shall charge RMB 2 coupled with milli face amount for issuing such bill of exchange. You can cash the bill of exchange at the local bank after reaching the destination. No other bank fees shall be charged for cash withdrawal or transferring abroad.
If large amount of foreign exchange is to be taken out of the country, it is advisable to carry currency in the form of travellers cheques and to bring just a small amount of cash. Not only is it convenient to use travellers cheques abroad, but these can also be exchanged for cash and no fees will be charged. You will be charged around 3% of any cash withdrawals you make from an ATM abroad, which makes travellers cheques all the more convenient and a safer option, as they are covered for loss and theft. Not only is it convenient to use travellers cheques abroad, but these can also be exchanged for cash and no fees will be charged. You will be charged around 3% of any cash withdrawals you make from an ATM abroad, which makes travellers cheques all the more convenient and a safer option, as they are covered for loss and theft..
How to exchange foreign currency?
Question: Who is qualified to exchange currency? What kind of formalities should be followed?
Answer: Any domestic inhabitant with valid ID, full civil rights and a minimum amount of foreign currency (or foreign currencies) is qualified to trade foreign currencies.
If the client makes the transaction at a business counter, he/she must only provide a personal ID and foreign cash for exchange, and a bankbook or deposit receipt to the counter service personnel. If the client wants to make telephone or self-service transactions, he/she can only do so after taking personal ID and foreign currency, and a bankbook or deposit receipt to a bank outlet for approval.
Question: Between which foreign currencies can an individual conduct an exchange?
Answer: Clients may make the following two transactions to exchange foreign currency.
(1) USD/JPY, GBP/USD, USD/EUR, USD/HKD, USD/CHF, AUD/USD, USD/CAD, USD/NLG, USD/FRF, USD/DEM, USD/SGD, USD/BEF.
(2) Transactions between the aforesaid currencies not including USD, such as GBP/JPY and AUD/JPY, are called cross transactions.
Question: Which transaction methods can a person trading foreign currency use?
Answer: At present, there are three main transaction methods for personal foreign currency exchange: counter, telephone and self-service transactions.
Question: What should a client understand before trading foreign currency?
Answer: First, an investor should possess adequate knowledge of finance, monetary banking and economics, especially a basic understanding of foreign exchange and foreign exchange markets. These are the basic kinds of knowledge an investor should possess before trading in foreign currency.
Second, the key to make investment & financing by personal foreign exchange trading is to know the behavior of the foreign exchange rate. Third, when making a trade, if the market rate changes in a direction disadvantageous to the client, the investor may be faced with relatively high risk due to this fluctuation. The client can set a “stop-loss” price and in order to avoid further losses. Last, due to the variability of foreign exchange rates, the client may either profit or suffer losses due to trading in foreign currencies. The amount of profit or loss is determined by foreign exchange market conditions and the decisions made by the client who trades solely at his/her own risk.
In the 21st century, USD will remain a preferred world currency. Europe backed the establishment of the European monetary system according to provisions of The Maastricht Treaty. After 1999, it took three years for the new currency to be integrated into circulation. Each country needed an additional 7 or 8 years to fully adapt to the Euro. By 2010, many consider the Euro to be a solid, stable, and widely accepted currency.
Looking ahead to 2030, many believe that the JPY will become an important world currency. The nominal GDP of Japan has reached 60% that of the USA. Meanwhile, the Chinese RMB will also become an important global currency. With the return of Hong Kong in July 1997, the foreign exchange reserves of China reached 150 billion dollars, excluding the 100 billon dollars held by Taiwan. In this sense, the Greater China Region will become a significant power due to double-digit growth. The RMB will be a strong currency in the future.
Gold will still play a role in the future. At present, the overall quantity of gold produced has reached a significant quantity of 3.5 billion ounces (120,000 tons). Of the total amount, 1 billion ounces are held in the reserves of the central banks of numerous countries, and another 1 billion ounces exist in the form of jewelry, while the rest is held by speculators. It is the gold held by speculators that concerns Mr. Alan Greenspan. Whenever possible, Mr. Greenspan will pay attention to the gold market.
In 21st century, gold will be still play a role in the international monetary system, although not as significantly as it did in pervious decades