Search the Community
Showing results for tags 'Repatriation of USD'.
Found 1 result
-
Back in January I wrote a ditty on extracting RMB denominated funds from China. The usual methods of BofA Card, Union Pay, were cited. What was outstanding was whether or not I could successfully move "larger" amounts of USD out of China. I finally am able to report on those efforts. As a review; while my wife and I were visiting China last November, I wanted to try and "update" our banking accounts. For me it was impossible to manage with only a Passbook account and an RMB ATM card. We bank at Bank of China. We opened an ATM account able to hold multiple currencies, with linkages to RMB denominated BOC CD's, with online access and management via the internet. The ATM card was a world-wide Union Pay capable ATM card. The ATM card worked and we were able to convert RMB to USD at "most all" ATM machines and some would give us up to a $1000.00 USD. The cost was nominal but there were conversion fees, about %1, and ATM fees - about $3.00, and a couple of $5.00 hits depending on machine. We are told that one can take up to $20,000 USD a year out of the BOC via this method. What is not clear is if this goes against the $50K USD conversion total for the account holder. What remained was a test to see if we could in fact move larger amounts of money 'out of China - at will'. It appeared that the online access screens would in fact allow one to effect a Wire Transfer between the BOC account and the US account. I was able to input all the information - it all looked great - and when I told it to transfer the money - a final SECURITY screen was presented and it required two pieces of information: (1) A random seed generated from a token and (2) a secret code sent via a text to the phone number of the account holder based in China. Well I thought I was set, I had the TOKEN GENERATOR in my hand and my wife's Chinese telephone in my other hand. I requested the text - and nothing arrived. I sent her phone a text and it was there immediately. Ok, something wasn't working. My wife called the Bank Manager in China - only to be told that the phone text message thingy didn't work and that we should send the ATM card to the brother in China - and he could come in an send us as much money as we wanted - as many times as we wanted. Ok it was a plan. Well, I'm here to tell you that is in fact what has happened. For each Chinese ID card, (his, his wife's, his mother in-law, someone in the bank waiting room, etc) that he stands in front of the window at the bank - they will convert RMB to USD, up to the $50,000 USD limit per year. So, the first conversion and wire transfer test resulted in the following; $50,000.00 Sent, conversion rate on the day of transfer about 6.30+ to 1 USD. Cost at bank to Convert: $285.00 Cost at bank to Send WIre: $ 2.38 Rotten Thieves at Mellon Bank $ 15.00 My Bank $ 0.00 Total Cost to Move $50K $302.38 By anyone's math - it was about .6% to convert and move. A pretty low cost situation. So I've had a couple of shots at this and it all seems to be like getting pickles out of a jar (or going to bed with a women) the first time it is difficult the rest are easy. So the urban legend about the ability to move money out of China has some fact and some fiction. I'm also told, that if you sell something like a house, all you have to do is go to the Bank, show your sales/closing documents, and you can convert the entire amount at one shot with one ID card. And they say MOVE it in one shot out of the country --- only time will tell if this is fiction or fact, or if the rules will change.
