Job Discussion Forums

Monday · Joined: 29 Apr 2011 Posts: 29

I met some American teachers who said their Chinese university pays in dollars each month, instead of RMB. For example, a salary of ￥6000 is simply paid as $900 ever month. This arrangement makes it easier for them to pay their bills in the USA. I wonder, is this a common arrangement that schools can do? And it is fairly convenient for schools to offer this service? Or is that something that I must work hard to negotiate into the contracts and is a big inconvenience of the school administration?

I think such an arrangement could protect against the rapid changes in the value of the RMB, but I'm not sure if they were able to get the amount fixed in USD or if the conversion was recalculated each month.

OhBudPowellWhereArtThou · Joined: 02 Jun 2015 Posts: 1168 Location: Since 2003

It should be easy for the school to make the conversion for you, (especially if it is a public school) The school would have the bank make the conversion.

However, if you were to make the same conversion of 6,000 rmb to 900 USD at this very moment, you'd lose $21.71 in the deal.

You're asking the wrong questions here. I would ask the following:

What is the school's incentive for making the conversion for you? At the present the Chinese government is very concerned about rmb leaving the country. A conversion to another currency is tantamount to the rmb leaving the country.

and

Will the school convert rmb to USD according to prevailing conversion rates? If not, why doesn't the contract call for paying in fixed dollars rather in rmb? It sounds flaky to me. It sounds like someone is trying to make money from the fluctuating exchange rate.

I am not familiar with Chinese schools (public or private) offering payment in converted currency (though it isn't beyond the realm of imagination). In other countries (notably Kazakhstan), some schools schools such as Cambridge offer payment in fixed dollar or British pounds.

Shanghai Noon · Joined: 18 Aug 2013 Posts: 589 Location: Shanghai, China

I second what Bud said. Just convert it yourself if all you want is $900 per month. It would only take two trips to the bank.

OhBudPowellWhereArtThou · Joined: 02 Jun 2015 Posts: 1168 Location: Since 2003

Ah, but this could be a moneymaker for the school. If it's a public school and the school isn't remitting taxes, this could be a win-win situation. Without tax receipts it is USUALLY impossible to make a conversion without the help of a Chinese citizen. Some folks really get off on bringing a wad of Reds to the bank in exchange for a thin stack of Greens. Others are scared to death to engage in such a transaction.

Unless the yuan depreciates drastically, I'd pay $21.00 for the exchange. I might even bargain for a transfer to an American bank for a few extra bucks.

It is convenient for the teacher, but I wonder what goes through the minds of the bankers when they see frequent conversions like this from a school. Whenever such a conversion is made by a Chinese citizen, he must give a reason for making such an exchange.

OP: keep us apprised of this situation. It's interesting. I don't think I've ever heard of such a scenario.

Non Sequitur · Joined: 23 May 2010 Posts: 4724 Location: China

New to me too.
I wonder if the school gets some fees in dollars and holds these in a dollar account?
Paying salaries in dollars from that pool means the school doesn't suffer the exchange rate of bringing that money into its RMB accounts.
Or maybe the dollar account is in the US and the Chinese authorities don't know about it.

asiannationmc · Joined: 13 Aug 2014 Posts: 1342

Non Sequitur · Joined: 23 May 2010 Posts: 4724 Location: China

ah international schools!
I know I chose the wrong college major. Should've done education.

Shanghai Noon · Joined: 18 Aug 2013 Posts: 589 Location: Shanghai, China

OhBudPowellWhereArtThou · Joined: 02 Jun 2015 Posts: 1168 Location: Since 2003

Nooner,

You're a luckier man than I. I've always been paid in cash by my public universities. They've never paid my taxes. Absolutely nothing will convince any bank to cooperate with me regardless of any document that I produce. I've always had to rely upon students and Chinese friends.

I work in small cities, so that may have a bearing upon my challenges.

Shanghai Noon · Joined: 18 Aug 2013 Posts: 589 Location: Shanghai, China

In Shanghai they let you have $500 per day no questions asked. It doesn't matter if you're a teacher or a drug dealer. I go to the bank, buy $600 Canadian dollars and leave it in my foreign currency bank account. When I need the cash in my hands, I go to their main branch in Lujiazui and withdraw it.

OhBudPowellWhereArtThou · Joined: 02 Jun 2015 Posts: 1168 Location: Since 2003

Shanghai Noon · Joined: 18 Aug 2013 Posts: 589 Location: Shanghai, China

Sure, but are you sure you can manage it here? Shanghai doesn't have much in the way of horses...