How Much Money Can A Chinese Citizen Take Out Of China?

Goldman Sachs: Reaction to China's slowdown is overdone

Have a lot of yuan in Mainland china? Beijing would like to go along it that fashion.

The Chinese government is clamping downwards on the amount of cash its citizens can withdraw from ATMs overseas, its latest attempt to stop coin flooding out of the country.

The restrictions apply to holders of UnionPay bank cards issued in mainland People's republic of china. For the remainder of 2022, withdrawals will exist limited to fifty,000 yuan ($7,868). Starting in 2022, an almanac limit of 100,000 yuan ($15,737) volition use.

UnionPay customers are besides jump past an existing daily withdrawal limit of ten,000 yuan per menu.

The new rules will apply to the vast majority of Chinese citizens because UnionPay has a near monopoly on cards, and card payments, in China.

Mainland china already limits the amount of money an private can motility out of the country to $50,000 per year.

Even with those restrictions, capital outflows totaled $219 billion in the first half of 2022, according to UBS.

Money is flowing out despite authorities efforts to reassure investors who are worried about the country's economic slowdown, wild swings in the stock market and a sudden devaluation of the yuan in August.

China's foreign-exchange reserves plunged by a record $94 billion last month, co-ordinate to the country's central bank, leaving it with a war chest of $iii.half dozen trillion.

Tao Wang, an economist at UBS, said that strange exchange reserves are likely to fall further as Beijing defends the value of the yuan.

"But we believe widespread worries about the capability and liquidity of reserves are more a reflection of electric current farthermost market pessimism on China rather than facts and reality," she said.

CNNMoney (Hong Kong) First published September 30, 2022: vi:33 AM ET