China attempts tighter controls

Press, 2 April 1980, Page 27

China attempts tighter controls

NZPA-Reuter Peking The Bank of China will issue foreign exchange certificates from April 1 to strengthen foreign exchange controls, and stop the circulation of foreign currency in the country. Quoting the announcement, the New China News Agency said that the bank ; would issue the certificates jin exchange for foreign curIrency to' foreigners, overseas i Chinese and Chinese from ■ Hong Kong and Macao, the ; diplomatic corps, and forieign representative offices in (China. I “The certificates are to be ■used in place of the official I currency, the Renminbi ((China’s currency) in hotels, (ships, foreign trade centres land other units serving foreigners exclusively, and for (payment of- plane fares, I through-train or ship fares to Hong Kong or Macao and international telecommunications charges and parcel post,” the agency said. It was not clear whether visitors and foreigners resident in China would still use ordinary Chinese currency in establishments not catering exclusively to foreigners. Foreign exchange controls would be strengthened by the move “since foreigners, overseas Chinese and Hong Kong . and Macao compatriots will be differentiated from Chinese inhabitants. and no foreign currency will be used.” A black market in foreign currency has sprung up in some parts of China, particularly in the southern province of Guangdong, neighbouring Hong Kong, where the Hong Kong currency sells at double the official rate. Some diplomats, however, were skeptical about how successful the new certificates would be in damping down on the black market.

The news agency said that, as soon as the certifi-

cates were issued, “all units which now accept foreign currency directly will mark 1 their prices in Renminbi. ! and accept the certificates instead of foreign currency.” . Foreign currency has been used since the beginning of Hast year to purchase imported items such as liquor and cigarettes on sale in special shops. The certificates may be purchased at the Bank of China, or its designated exchange centres throughout the country. "Short-time visitors may convert the certificates into foreign- currency again upon' their’departure’ or take, the’ ■certificates out of the coun-l (try.” the agency commented. I The certificates would be issued in seven denominations: 100 yuan, 50 yuan, 10' (yuan, five yuan, one yuan, '5O fen. and 10 fen. (One (United States dollar equals; ;about one yuan fifty fen). > All except the 100 yuan! and 50 fen denominations ar' to be issued on April 1. The I other two will be issued later. The bank regulations “forbid private dealings in the certificates or counterfeiting! them.”