Job Discussion Forums

[Jaenus]

Is the RMB you earn in China exchangable into U.S. dollars, or other?

The reason I ask is because I shared my intentions of teching in China with my friend's mother, who happens to be from China.

She warned me that when she was there around 15 years ago (or so) that she had to exchange her dollars to FEC (foreign exchange certificates), and that FEC were highly accepted on the streets and could buy imported goods.

RMB was the people's currency and sometimes nationals wouldn't want to hassle with a foreigner with RMB, and RMB couldn't get you imported goods.

Since China joined the WTO, I'm assuming they've done away with two currencies, but I can't be too safe.

SO - Anyone currently in China, or recently out of China, your imput would be appreciated. It'd be a shame to work there 2 years only to find that all that RMB I saved up wasn't convertable to US.

Thanks.

[tw]

[Jaenus]

LOL. Yea, I even told her that I seriously doubted that the WTO would have accepted China if they had 2 distinct currencies, but she seemed pretty damn determined.

Thanks, TW!

[Roger]

The Chinese currency is not an internationally usable currency; it can only be converted legally inside the PR of C; to do so you must have government approval. As legal job holder you can exchange a percentage of your income into any foreign currency. The percentage often is set at 70%, seldom at 100%.
Many FTs do not have legal status, i.e. they are working on businesspeople's visas. They can only change their money on the black market or in Hong Kong (into HK dollars, then convert those into euros or Aussie dollars).

Foreign Exchange Certificates (FECs) were phased in the middle of the 1990s. They were a parellel quasi-foreign currency that entitled foreigners to pay for services purchased in China for which locals would pay in their regular RMBs; private businesses often didn't know of the existence of FECs, so foreign visitors quickly came to appreciate the fact that their FECs were highly coveted, fetching up to double their nominal value on the black market. CHinese would want to have FEWCs so they could buy imported goods or goods made in China and targeted at foreign customers at special shops (Friendship Store etc.).

[coming soon]

Roger has said almost everything there is to say about this. I will just add that when you sign your contract and you are provided with your work visa, you should also get a Foreign Expert Card (red booklet) that you need to take to the bank in order to exchange your RMB into $. That is what the school, the recruiter and the bank told me when I asked about this. I figured that if all 3 of them agreed on the procedure, then there is a high chance they might be right.

[brsmith15]

On my trip back to the US, I noticed a money exchange booth at the Detroit airport which exchanged RMB and USD. The rates were about 25% higher than the PRC and anyone would be a fool to use such a scam. BUT......this was the first time I'd seen anything like this.

[tw]

[mlalahoi]

TW is correct, i have sent RMB to family in the US and they had no problem changing it to dollars at the airport, anyone with experiences in the UK? I am sure it's the same, but firsthand is always better

[W.V. Orman]

mlalahoi, which airport?

[mlalahoi]

Orman,
JFK