Chinanews, Beijing, Jan. 11 – Starting from February 1, the amount of foreign exchanges Chinese individual citizens are allowed to carry abroad will be raised from 20,000 to 50,000 US dollars a year. Many overseas students and people who travel frequently abroad feel excited about the news. To foreign exchange scalpers, however, the new regulation might make it difficult for them to make any profit in future, the Market News reported.

 

Mr. Zhang is one such foreign exchange scalper. He had been doing this “business” for about 8 years. He said that after the new regulation was implemented, foreign exchange black market would no longer exist. He is now considering doing something else for a living.

 

Business of such foreign exchange black market once boomed in China. At that time, Chinese citizens had to run through tedious formalities in banks when they needed to exchange for some foreign exchanges, and the amount of foreign money they could buy was rather limited due to government regulation. As the Chinese government raises the limit, it is very convenient for Chinese people to buy foreign exchanges in banks and therefore the black market is no longer needed.

 

In addition, the rate of foreign exchange keeps declining. Without any specific purpose, many Chinese people are reluctant to hold a large amount of foreign exchanges. Previously, some Chinese people did so in order to preserve their assets value.