Under the new rules, UnionPay cardholders can withdraw up to 50,000 yuan… China posted a deficit of $125.6 billion on its capital account and financial account in the first half of 2015, including $40.6 billion in the March-June quarter.
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Users will be limited to withdrawing a total of 50-thousand yuan or almost 8-thousand US dollars, outside the Chinese mainland from October to December.
The measure is the latest effort by Beijing to scrutinize capital outflows. SAFE will require banks to record accounts with a withdrawal history exceeding the limit, which will comprise a new watchlist.
“Cross-border capital flows will be relatively volatile”, the State Administration of Foreign Exchange (SAFE) said in a statement on its website.
The step was aimed at curbing “money laundering risks” after it found a few unusual activities among card holders, it said.
China UnionPay – which provides nearly all the country’s bank cards – will limit annual withdrawals to 100,000 yuan ($16,000) each year, China National Radio (CNR) said.
Moreover, the cash withdrawal cap also echoed the previous announcement of restrictions on Chinese capital outflow.
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The country’s foreign exchange reserves fell to $3.56 trillion in August as the People’s Bank of China intervened in the currency market to prop up the yuan and prevent money leaving the country.
