According to the statement of the Chinese government individuals and any kind of companies will get the opportunity of limited foreign exchange transactions. It will be a kind of temporary trial experiment.
Such changes of the state’s policy is an integral part of the preparation of the country to the world Expo that will take place in 2010 in China as well as to the establishing new governmental body – the State Administration of Foreign Exchange.
The matter is that China has strict limitations in the foreign exchange trading area. Such opportunities have only several travel, business related companies and banking sector.
Due to the State Administration of Foreign Exchange statement now the companies not involved into the banking sector will also be able to participate in foreign exchange trades. The first attempt will be given to Shanghai Zhangjiang ICE Foreign Exchange that is a joint venture between the local Zhangjiang Group and International Currency Exchange (Europe).
But new policy will be limited still. Now the people in China will be allowed to exchange not more than $50,000 annually with maximum of $5,000 a day. As for the foreign expatriates they will be able to purchase not more that $5,000 equivalent of yuan a day and sell not more than $500 equivalent a day.
The company that will be the first in this experiment possesses two branches in the Pudong International Airport and in a subway station. The branch located in airport operates 24 hours a day unlike most of the banks.