On Dec. 9, China’s official media reported that the Bank (the Chengde branch of China Bank) was fined 40,000 CNY because of allowing a customer to withdraw 50,000 US dollars in total in 7 days. According to the administrative penalty information issued by SAFE (the State Administration of Foreign Exchange) on December 9, it indicated that a customer withdrew 10,000 US dollars 5 times in a week (50,000 US dollars in total).
Here is the administrative penalty form:
Based on the Measure for the Control of Individual Foreign Exchange, it is regulated that Individual exchanges USD by RMB with the limitation that at most 10,000 USD per day per person. Withdraw operation is limited at twice a week, which means that only 20,000 USD per week is allowed. Extra documents are required if an individual needs to do the transaction in two successive days. Otherwise, he/she will be fined 30% of the money up to 50,000 USD. Meanwhile, individuals breaking the law will be investigated with money laundering and sentenced in prison if necessary.
SAFE controlled by CCP has already conducted supervision in real-time in order to prevent a large amount of capital from going abroad. It is issued by SAFE in November that there was about 3 trillion USD stored in China and about 2 trillion USD foreign debt that is a new record, which means that only 1 trillion USD remained in China according to the official data. (Note: We don’t believe the regime’s ‘official’ number.)
The currency in the hands of citizens should have been freely convertible. The CCP’s control of the people’s exchange of dollars is a clear indication that the CCP urgently needs dollars. The incident brings us a legitimate conclusion that CCP is desperately short of USD reserves.
Author: DDL & GM09
Cover Pic: GM44