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RFA Commentary: What It Means When China Limits the Outflow of Currency

Radio Free Asia published a commentary reporting that the State Administration of Foreign Exchange recently issued a notice that, starting January 1, 2018, each year, a Chinese citizen, when in a foreign country, will only be able to withdraw 100,000 yuan (US$15,415) cash using a debit card or credit card that a Chinese bank has issued. They will also be limited to a cash withdrawal of 10,000 yuan (USD$1,541) each day and will be prohibited from using other people’s cards or letting other people borrow their card to withdraw the cash. The article said that the tightened cash policy is an indication that the Chinese economy may appear strong from the outside but it is weak on the inside. The article stated that forcing the “low end” population to leave big cities and to limit the cash flowing out of country, are both indications that China’s political climate is far more serious than what has been reported. The article said, “There was a prediction that the bubble in China’s economy might burst soon. Even though it has not happened yet, it could only be a matter of time and will catch people off guard because some of the real issues are being pushed aside and have still not been resolved.”

Source: Radio Free Asia, January 1, 2018