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exchange earnings
from exports of general commodities are
shared among the export enterprise, the local government and the central government in the proportions of 4:1:5.
38.
The scope of reform has been widened to cover
also foreign exchange transactions by individuals. As from December 1991, Chinese residents are allowed to buy and
sell US dollars and Hong Kong dollars in the swap centres,
although their transactions are subject to volume ceilings
and limited to uses laid down by SAEC.
39.
Starting from 1 March 1993, travellers are allowed to carry Renminbi in and out of China in amounts up to Rmb 6,000 each time. This is intended to afford greater convenience especially to frequent travellers to China. It in turn has led to a flourishing Renminbi exchange business
(10). in Hong Kong
40.
In mid-April 1993,
management rules
for the swap
stipulating that all transactions
centres have to be approved by
transactions to
different localities.
be
SAEC promulgated
centres.
conducted
the
Apart from
in the swap
SAEC, the rules allow
carried out between swap centres in But they prohibit any transactions
outside the swap centres. Moreover, change in use of the
foreign exchange purchased
from the centres is forbidden.
In early July 1993, PBOC issued an order stating that foreign exchange quotas held by enterprises should be redeemed within a period of three to six months, and quotas
(10)
Po Sang Bank, which is a member of the Bank of China Group, takes the lead in providing the service of cash exchange between Hong Kong dollars and Renminbi. It provides quotation on a daily basis and is responsible for the recycling arrangements.
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