Bringing Money to the US

[shalaowai]

HK is not an option for us. So I need to find some other option with or without travelers checks.

 

I have also heard of people in China setting up credit cards with Visa and/or Mastercard to use their money in the US. anyone have any experience with this? (I mean this particular type of arrangement, not just an ordinary CC account that most of us here probably have several of.)

 

just exploring the options

 

[king]

Today I saw a news piece on the Net that said that China was changing its regulations to let Chinese transfer assets out of the country starting next month. It sounded like a big loosening up of asset controls. I didn't get much detail. It was in the online South China Morning Post, so the means it will have an article in the paper edition. Will post more as I get it.

[lele]

I talked with someone from my bank (bank of america) they said that if I bring in Chinese RMB to deposit into my acount they will do so at the rate set forth by the Gov. They said they have no control on the conversion rate. 

 

My fiance said that some girls on 001 had mentioned travelers checks as an option for bring their money out of China.

 

Still trying to figure out a way for her to bring some of her money here to the US. more importantly, in a way that allows her to do so without losing to much of the value.

 

one minute we're talking about moving funds, the next minute it is fish stories. nice tangent. lol

 

The problem with this is that the govt in the US claims that the RMB is undervalued, so they only give you 1:9.2, which is a very bad deal (this was the last time that I checked). So, if you were to purchase HK$ and then take this as a HK$ TC, then you would get a much better rate of exchange on your money. :-)

 

HOWEVER, if you do want to bring RMB, I know many individual people who will gladly trade you at the normal exchange rate (since those coming back to China who are Chinese citizens on F1 or G1 or F2 or G2 visas can not get RMB from US$ easily once they get back to China).

 

GL

[Guest Gene]

(since those coming back to China who are Chinese citizens on F1 or G1 or F2 or G2 visas can not get RMB from US$ easily once they get back to China).

B) HUH?

[lele]

(since those coming back to China who are Chinese citizens on F1 or G1 or F2 or G2 visas can not get RMB from US$ easily once they get back to China).

HUH?

Many Chinese people, currently in the US, on F1, F2, G1, and G2 visas have a very difficult time exchanging all of their US$ back into RMB once they get back to China.

 

I have seen this myself. I am not sure what the limit is, but many save 2.5wan US$ or more and want to trade it, but can not. It is with THESE people that if you have extra RMB you can trade when you get into the US.

[msmckee]

The problem with this is that the govt in the US claims that the RMB is undervalued, so they only give you 1:9.2, which is a very bad deal (this was the last time that I checked).  So, if you were to purchase HK$ and then take this as a HK$ TC, then you would get a much better rate of exchange on your money. :-)

Not true. True, the US government claims the Yuan is undervalued. False that they set the rate. The Yuan is "pegged" to the dollar by the Chinese government. The exchange rate you get depends on who you wish to exchange it with. American banks take the "juice". You get a better deal exchanging with a Chinese bank.

[lele]

The problem with this is that the govt in the US claims that the RMB is undervalued, so they only give you 1:9.2, which is a very bad deal (this was the last time that I checked).  So, if you were to purchase HK$ and then take this as a HK$ TC, then you would get a much better rate of exchange on your money. :-)

Not true. True, the US government claims the Yuan is undervalued. False that they set the rate. The Yuan is "pegged" to the dollar by the Chinese government. The exchange rate you get depends on who you wish to exchange it with. American banks take the "juice". You get a better deal exchanging with a Chinese bank.

What do you mean false?

 

It is true that the Chinese Peg the rate. I do not deny this.

But, in exchange, the SEC has the US in reverse set their own PEGGED rate.

 

This is what legally enables the banks to make such a windfall in the conversion back.

 

What in fact happens is that both sides have pegged the rate to the other.

 

The legal justification that the US uses is because of its huge deficit with China at the current time.

 

Additionally, China does not actually "Peg" its currency the same way that certain other nations (ie. Cuba) pegs its currency. In Cuba, one transferable peso today = 1.1 dollars. This is how it is defined. In china, they do not define it based on the US$ anymore. What they do is use market mechanisms (all perfectly legal under the WTO rules) to buy and sell US Debt that they have collected, to keep it at a rate of exchange which remains stable for them. Since this is all perfectly legal, there is no way to ever force them to change their rate of exchange, and hence it can not be UNFAIR.

 

Actually, there is one way to stop them from doing this, and that is to stop selling them our debt. Of course to do that, it would require the US raising taxes (which is not necessarily a bad thing, if they were being spent on such things as speeding up our processing time and accuracy!!!!), getting out of Iraq, etc.

 

Just some perspectives on the issue that I thought made some sense to me when I first thought it through!!!

[hypoclear]

Hmm I can't pull this up on www.szdaily.com.cn but on nov18/2004 they have a front page article.. "Curbs eased on personal asset transfers."

 

"... relaxation of restrictions is major breakthrough in the regulation of personal asset transfer, the People's Bank of china....." "People wishing to transfer their assets overseas should apply to the State Administration of Foreign Exchange or one of it's branches...move funds out within 2 years of gaining approvel..."

 

It doesn't state an amount but starts out with from December Chinese coitizens Emigrating overseas.. will be able to legally convert their personal assets into foriegn currancy and transfer out of china..

 

Hope this makes things a little clearer and that the office mentioned can add more detais..

 

Mark and Bea and Elizabeth at 1 month in 3 days!! B)

[king]

This comment is not meant to question Lele's suggestion to exchange money with returning Chinese, but as a few words of caution. If you intended to do it without a proper check for counterfeit money, you would be taking an unnecessary risk.

[lele]

This comment is not meant to question Lele's suggestion to exchange money with returning Chinese, but as a few words of caution. If you intended to do it without a proper check for counterfeit money, you would be taking an unnecessary risk.  

Completely fair assessment!!!

 

I for one would only exchange money with people I know, such as people at my university or who specifically work with me. However, there are many such people who exist. But, an excellent point!!!

 

This should also be considered. Which agencies out there have back track records? For example, Mastercard recently has been sued for fudging foreign exchange rates. So, I will not use my master card on my up and coming trip. Does anyone else know of issues like this?