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Changing rmb to US dollars


paulfmeier

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I have been a consultant for a Chinese company for 3 years and spend 4 months a year in China (30-40 days per trip). I purchase my plane ticket in the US but my salary and reimbursement are in rmb. Money exchange has been my biggest problem. As you are probably aware, a foreigner is limited to exchanging rmb to $500 per day but a Chinese citizen can exchange rmb to $10,000. The company for whom I consult will occassionally provide a person to help me exchange money, but I also go alone every day to the bank.

I have looked at electronic transfer and discussed this with Beijing banks, but it is prohibitively difficult. Does anyone know of a way to get around this problem? It is very time consuming to spend an hour each day at the bank, as well as carrying large sums of money back home on the plane.

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Not sure if this works for a foreigner but I don't think it shouldn't.

Goto Bank of China. Open a visa/master card credit card (although acts like a debit card where you need money deposited to spend). Make sure you get the type that deposits RMB and withdraws USD.

When you are in the US, you're still limited from a daily withdrawal of 500 USD or something. However, you are bringing home a credit card with money, not real cash that you can use for day to day purchases in the US.

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Doubt you'd get a credit card without being actually employed and resident in China, and it sounds like you're not. Might be worth a look. Throw Hong Kong in the mix somehow? Some people just carry bags of cash over the border.

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I'm not sure I really understand how this "limit" is enforced in the mainland. Are the only places where you can change money government controlled? No money changing stalls after every street like in HK or black markets?

If you can physically get the money into HK I don't imagine how it would be possible to enforce any sort of limit because you could just go to the next money changing stall for the next $500. Not sure if it is a smart idea to take bags of cash across the border though.

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There are (or at least used to be, anyone know if they're still there?) black market money changers hanging around the banks where you could get (if you had all the documentation) foreign currency. I'd imagine there's a lot less of them now that it's much easier for Chinese citizens to obtain foreign currency. Some shops around Sanlitun also used to host money changers.

That might be an option - not sure what rates are like though, and it's obviously a bit dodgy.

Paul, I'm assuming you're doing this work while on a business or tourist visa, yes?

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Have you explored having the company apply with its bank to pay to your US account in USD. There is no dollar limit on how much a company can pay for such "current account" costs.

They will need to bring a copy of your consulting contract and evidence of tax payment to the bank to make the payment. The bank may also require other documentations.

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Doubt you'd get a credit card without being actually employed and resident in China

Not even a debit card? I could see that a bank wouldn't want to extend credit to someone in that situation, but a debit card seems much safer.

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OP, you might want to check with a global back, such as HSBC. They probably can't get around the rules, but they could likely make it easier, e.g. deposit it in RMB, withdraw (slowly?) in USD. You might want to look into HSBC Premier, for example.

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Thanks to everyone for their input. I believe that I am the first foreign consultant this company has ever had. In the first 2 years of my contract, my salary actually went to a "middle man" company in Shanghai, because my employer did not know how to take out the Chinese income tax. In fact, for the first 2 years I had my salary going to the Shanghai Merchants Bank and my reimbursement going to the Beijing Bank of Communications. Now, everything goes to the Beijing Bank of Communications (BOC).

I do have a gold debit card with the Shanghai Merchants Bank and have used it in the US to withdraw money. However, it expires in May this year. I asked the Beijing BOC about a gold debit card, and they have a waiting period of 2 months. Since each business trip is only 30-40 days, this means the card would have to wait somewhere until the next time I come to Beijing.

Of course, when you go to a bank to exchange rmb to $500, they have your passport number, so it is not possible to go to any other bank on that calendar day. I have not tried money changers, because of my fear of counterfeit money, but maybe I should consider this. Also, with respect to going to Hong Kong, while this is possible, it is not exactly a short flight from Beijing to Hong Kong. Each business trip, I start in Beijing and then travel to various refineries around southeast China.

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There are (or at least used to be, anyone know if they're still there?) black market money changers hanging around the banks where you could get (if you had all the documentation) foreign currency.

They are still there (at least in Kunming.) Like the Original Poster, I would be concerned about fake bills.

Not even a debit card?

Debit card, no problem (Bank of China, Kunming.)

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There is a good money changer on the 2nd floor of YaXiu I used several times and was quite reliable. That was about two years ago though, it was at the back of a shop then.

If you can prove that you paid taxes on your salary you can exchange your full salary into foreign currency at any bank legally.

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  • 3 weeks later...

Actually the $500 limit is only for foreigners without proof of income. The limit is your total income, but you need to prove it: Take your contract, salary stubs and also proof that your taxes were withheld -- Called Tax Certificate / 个人完税证明 issued by the local tax bureau (HR can help you with this).

However, by far the UnionPay debit card is the most convenient option. I was able to withdraw USD from my BOC account at a Citibank in the US (and Brazil too!) and it works. The exchange rate they use is excellent, and the fees are pretty fair. And I do not have a Gold card, just a plain UnionPay debit card.

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I heared that most companies do not actually pay your tax so getting a Tax Certificate might be tough...

That's required by law if you have a legal employment with a high enough salary (like 3k+ a month). Even small companies have to pay including my family businesses with a very small startup capital registration.

If you are not working with on a Z visa then obviously, it can be different since illegal workers are obviously different.

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