How Foreigners Can Exchange Currency in China

For many travelers, one of the most pressing concerns before setting off for China is how to handle payments. China has fully entered the era of electronic payments. However, cash remains a valid and accepted method of payment. In fact, exchanging foreign currency for RMB in China is not at all complicated. Currently, there are several different options available to choose from. This article will introduce some methods for exchanging foreign currency.

1. Which Currency Can be Used in China?

In mainland China, the legal tender is the Renminbi (RMB). Its currency code is CNY. All daily purchases, payments, and pricing are settled in RMB. Foreign tourists are not allowed to use other currencies such as US dollars, euros, and British pounds for spending. If you need to use cash for purchases, you must first convert your currency into RMB.

2. Bank Counters

It is the safest and most official method available. In addition to stable exchange rates and transparent fees, you can also receive professional guidance. Major commercial banks in China, such as the Bank of China, Industrial and Commercial Bank of China, and so on, all offer this service. The specific procedure is also quite simple.

You must bring your valid passport to any bank branch that handles foreign currency exchange. You have to inform the bank staff of the specific foreign currency and the amount you wish to exchange. The staff member will ask you to fill out the relevant exchange forms. Then, you can hand over the foreign currency cash you have prepared. The staff member will calculate the equivalent RMB amount based on the exchange rate for that day. Once you have verified that everything is correct, you can get your RMB cash. The entire process only takes around 20 minutes to complete.

It should be noted that when exchanging large amounts of currency in China exceeding the equivalent of US$5,000, you need to make an appointment with the bank 1-2 days in advance. This helps prevent delays or the inability to complete the exchange. Additionally, service fees vary slightly among different banks.

For example, the Bank of China charges a 0.1% handling fee. The minimum is 50 yuan, and the maximum is 260 yuan. Plus a 150 yuan telegraphic transfer fee when exchanging US dollars. It is advisable to consult with bank staff in advance to confirm the specific fees before proceeding with the exchange.

In addition, if the exchanged RMB is not used up, it can be redeemed with the applicant’s valid ID and the original exchange slip. You may process this “buy-back” transaction at the original bank branch within 24 months from the date of the initial exchange. For daily withdrawals not exceeding the equivalent of USD 500, the process can be completed directly with a passport.

3. Currency Exchange Counters

Currency exchange counters are primarily located in places frequented by foreigners. Airports, train stations, and select five-star hotels or elsewhere. These represent the most convenient channel for exchanging currency in China. They are particularly well-suited for foreign tourists who have just arrived in China and are in urgent need of RMB cash. No advance appointment is required. You simply need to bring your passport to perform the exchange on the spot. The funds are credited instantly. Therefore, the process is a significant time-saver.

One key advantage of this way is its extended operating hours. They are able to accommodate currency exchange needs at various times throughout the day. Furthermore, the exchange process is straightforward and simple. Most of the staff members speak English. It ensures hassle-free communication. Once you hand over your foreign currency, you can quickly receive your RMB in return.

However, you are supposed to note that the exchange rates offered at these counters are typically less favorable than those found at banks. Moreover, their service charges often take the form of hidden fees. They do not explicitly charge transaction fees but instead profit through a model of “low exchange rates and high spreads.”

For instance, 1,000 RMB might be exchangeable for approximately 141 USD at a bank. That same amount might yield only around 130 USD at one of these exchange counters. The difference constitutes the hidden service fee. Consequently, currency exchange counters are best reserved for situations involving urgent financial needs. Just like the person who is requiring immediate cash to cover transportation costs upon arrival.

It is advisable to compare the rates offered by several different counters. Selecting the one offering a relatively reasonable exchange rate. You are supposed to ask in advance whether any extra service fees apply so as to avoid being overcharged.

4. ATM Cash Withdrawal

This is the most flexible and hassle-free method for currency exchange. With an international bank card with a Visa, Mastercard, or UnionPay logo, you can withdraw cash directly from an ATM. You can just simply locate an ATM displaying the logo of your card’s corresponding clearing network. They offer 24-hour self-service cash withdrawal capabilities.

The first step is to insert your international bank card and select your preferred interface language. English and multiple languages are supported. You should follow the instruction to enter your PIN. Then you need to select the “Withdrawal” function. The next step is to enter the amount of RMB you wish to withdraw. Once you push the confirm button, the RMB cash will be dispensed.

Please note that ATM cash withdrawals incur two types of fees. A cross-border withdrawal fee charged by your card-issuing bank. This fee ranges from 1% to 3% of the withdrawal amount. Also, an interbank or cross-border service fee charged by the bank operating the ATM within China. This fee is between 10 and 20 RMB per transaction.

What’s more, ATM withdrawals are subject to a daily limit. The maximum daily withdrawal amount is the equivalent of 10,000 RMB. In the event that the ATM retains or “swallows” your card, contact the staff at the bank branch or call the bank’s customer service hotline. You can then follow the established procedures to retrieve your card.

Conclusion

For foreigners, exchanging currency in China is not a difficult thing. With the right channels and ways, you can easily achieve it. A well-planned combination of “bank exchange, ATM withdrawal, and mobile payment” can make your trip to China smoother and more efficient.

If you find planning things like exchanging money, getting phone service, and booking tickets a bit troublesome, feel free to let Tattle handle your trip. We offer a comprehensive range of services. It includes airport transfers, hotel reservations, and route planning. We can also provide assistance with mobile payment setups, as well as full-time guided tours throughout your journey.

From the moment you land, a dedicated person will assist you with various issues such as payment, transportation, and language. This allows you to focus your energy entirely on truly experiencing the beauty and culture of China. If you are planning a perfect trip to China, please visit us. We are here to ensure your travel itinerary runs as smoothly as possible.