Foreign Exchange Market

50 years ago

PUBLISHED : Sunday, 05 December, 1999, 12:00am
UPDATED : Sunday, 05 December, 1999, 12:00am

Canton (December 8): The Communist authorities in Canton have launched an 'Anti-Foreign Money Campaign', urging people to refuse to take foreign notes, particularly the Hongkong dollar, as medium of exchange.

As the Hongkong dollar was widely circulated in South China, the Communist authorities put all the blame on it for the drastic devaluation of Jinminpiao (Communist dollar).

The recent rate was about 17 Hongkong cents to JMP$1,000, while in early November the official rate was JMP$500 to HK$1.

Over 10,000 school boys and girls are busily engaged in making soapbox speeches condemning the blackmarketing of Jinminpiao and stressing the evils of using Hongkong dollars, according to Canton papers.

Four exchange regulations have been promulgated by the Canton authorities. They are (1) Gold and Silver Control; (2) Foreign Exchange Control; (3) Overseas Chinese Remittance Control; and (4) Private Banks Control.

The regulations threaten severe punishment for using Hongkong dollars and other foreign currency as means of exchange; heavy fine, besides confiscation, on those engaging in private transaction and exportation of gold, silver and foreign money.

The regulations also demand that people turn in their valuables and foreign money to the People's Banks for Jinminpiao, but do not set a deadline for the turnover.