Job Discussion Forums

Jaenus · Joined: 14 Jul 2005 Posts: 12 Location: Sacramento, CA

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 · Joined: 04 Jun 2005 Posts: 3898

Jaenus · Joined: 14 Jul 2005 Posts: 12 Location: Sacramento, CA

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 · Joined: 19 Jan 2003 Posts: 9138

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 · Joined: 16 Jun 2005 Posts: 47

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 · Joined: 12 May 2003 Posts: 1142 Location: New Hampshire USA

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 · Joined: 04 Jun 2005 Posts: 3898

mlalahoi · Joined: 03 Jul 2005 Posts: 54 Location: China

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 · Joined: 05 Jul 2005 Posts: 69

mlalahoi, which airport?

mlalahoi · Joined: 03 Jul 2005 Posts: 54 Location: China

Orman,
JFK

Roger · Joined: 19 Jan 2003 Posts: 9138

Why am I "completely" wrong with my information?
The CHinese yuan is not legally convertible outside of China. This does not mean you cannot, with a little luck, try to get U.S> dollars with your RMB in the U.S.A. I have seen moneychanger booths in Brussels that accepted RMB - but at a price! I have also been able to use RMB in Vietnam,and I know you can pay for certain services or products along the CHinese-Russian border and, probably, in Mongolia. In Hong Kong they accept yuan now in parallel to the local dollars.

BUt the RMB is still not a convertible currency, and it will take years for it to become one. When it finally has become convertible you can read its exchange rate in the exchange tables of major newspapers and in various banks.

tw · Joined: 04 Jun 2005 Posts: 3898

go_ABs · Joined: 08 Aug 2004 Posts: 507

I'll just add to the chorus of "you can do it". In both Wellington and Auckland airports I was able to change RMB to New Zealand dollars, and vice-versa, using the Bank of New Zealand. The exchange rate was normal, and there was no fee charged (or it was minimal, I don't remember exactly).

I've read and heard that the RMB is not internationally convertible, yet I don't imagine the Bank of New Zealand would be openly flouting laws.

How should I resolve this? I dunno.

latefordinner · Joined: 19 Aug 2003 Posts: 973

So it seems that the RMB is neither entirely legally convertible, nor difficult to convert. Call this conundrum, "Convertability with Chinese Characteristics" then. FWIW, can anyone think of any repercussions that could follow from converting rmb at the airport? Legal, I mean, knowing that exchange places do levy a hefty fee. But then so does the Bank of China when you wire money out to your bank of choice in whereverland. What could they do about it, and how much do they care?

go_ABs · Joined: 08 Aug 2004 Posts: 507

I don't really know, but wanted to comment on one thing. When I send money home, it is usually in the range of US$1,500-US$2,000.

I get charged about 300RMB to do so, by the Bank of China. Considering the amounts involved, I don't really consider that so "hefty". There might be cheaper ways to do it, but that is the only option available to me here, and it works quite well. Money arrives within 3-5 days.