Henceforth, when wishing to exchange foreign currency, citizens of foreign states are required to provide Chinese banks with truthful information about the nature of the origin of the foreign currency and identity documents. Truthful information apparently means a customs declaration or a bank certificate confirming receipt of the cash amount. A Chinese bank will exchange money only after it verifies the truthfulness of the information about the currency's origin. The circular also restricts settlements in foreign currency on the territory of China and the amounts of foreign currency received in cash.
Businessmen who import equipment from China should take into account that all settlements in China are made only in the national currency and that in the vast country there is not a single currency exchange point (except for central banks) where one can purchase Chinese yuan. Exchanging currency with semi-legal money changers at markets for foreigners is fraught with criminal or administrative liability.
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