The new cap also applies to MasterCard and Visa cards issued in China.
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China UnionPay is set to cap overseas cash withdrawals from October.
Prior to the implementation of these guidelines, a UnionPay card was exclusively restricted by a day by day cap of 10,000 yuan, or equal quantity in overseas foreign money.
Chinese law prohibits individuals from transferring more than $50,000 out of the country per year, but overseas cash withdrawals via bank cards provided a regulatory loophole.
The measure is the latest effort by Beijing to scrutinize capital outflows. The restrictions are aimed at “further enhancing the work on anti-money laundering and the prevention of financial risks”, CNR cited UnionPay as saying. In August, China’s foreign-exchange reserves reported a record fall of $93.9 billion after the central bank surprised the market by devaluing the yuan by around 2%.
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China’s foreign exchange reserve decreased USD 66.6 billion in the first six months, after decreasing USD 79.5 billion in the first quarter and adding USD 13 billion in the second. Worries about financial outflows from China have deepened since the government last month moved its currency nearly five per cent lower in a single week, a move seen as an attempt to boost flagging exports.
