Currently, the government allows each individual to buy up to US$50,000 a year in foreign currencies and bans large “irrational” outbound investments, such as purchases of hotels, real estate, sports clubs and entertainment concerns. Photo: AP
China cracking down on illegal underground forex trading in bid to control capital flight
- Beijing cracking down on use of unregulated underground banks to buy or sell foreign currency to maintain stability of the exchange rate and its slowing economy
- Prison term of up to five years and a fine for ‘severe’ offence, jail term of more than five years and fine or confiscation of property for an ‘extremely severe’ violation
Currently, the government allows each individual to buy up to US$50,000 a year in foreign currencies and bans large “irrational” outbound investments, such as purchases of hotels, real estate, sports clubs and entertainment concerns. Photo: AP
