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Q: People selling currency
I was walking by the main bank BOC and I always see those people hovering outside the bank who want to exchange currency although I have never used them. I need to change some RMB soon and want to know if these people are legit and do they give you real currency (not fake notes) as I don’t want to be cheated.
One woman was offering a slightly higher rate than the bank itself but my gut kicked in with that saying ‘If it’s too good to be true….’. So can anyone confirm the legitimacy or advice on this as if it’s legit then I might just give it a shot.
Also just out of curiosity how do they make a profit from this service?
8 years 32 weeks ago in Money & Banking - China
I see it all the time. While it is not, in my opinion, totally legitimate (Chinese can not have foreign currency in their possesion), it is in some cases done inside the bank, in full view of bank workers and bank security, and no one complains. I will not do it on a street, with bank notes physically exchanging hands, because the risk of counterfit notes is too high, and once you touch yjeri money is yours.
In fact, I learned oi this at the suggestion of a BOC bank officer. When the rate of exchange was in the 5.9 range, I complained it was too low, and the officer called a lady standing right outside bank and even translated for me. They do not give you a lot extra, assume the bank rate is 6.37, they will offer 6.39.If you have large sums for exchange, may go a little higher, but again not by much.
I feel safe because first I am inside the bank. Second, the exchange is done thru a bank teller. They give the teller a passbook, I give the teller the dollars, she deposits them in their account. Then they give the teller another passbook, and transfer the Rmb from that account into mine. No chance of counterfit bills.
I asked one of them once how can they profit from this, His answer was cryptable, but I understood it. He more or less say "China many regulations, Chinese need dollars, Chinese buy from me with no problem". And I fully understood when the daughter of a close friend went to college in USA. Her father came to me and asked if he gave me Rmb here, will I give her daughter dollars in USA. He claimed too many forms, too many questions and documents needed for wire transfer. So, for 4 years I had a very nice exchange rate, no hassle with banks and wire transfers, and I am sorry it ended.
Nessquick:
Exactly same situation happened to me some years ago in Shanghai. I went to bank with 40k usd , needed rmb for goods payments. Refused by bank teller with " foreigner can not exchange that much" , but my few "stupid questions - why ? " soon some men came to us and bank teller explained to me that we can do that that way, as you described. I finally agreed and it went smooth, but my butt was very tightly closed all the time...
I have never seen this. I have been coming to China since 2005, and I have never seen this. I know of bars in dodgy areas that will do money exchange. If you need to exchange money just do it in the bank. You don't score extra "experience points" by doing illegal things. Why do people coming here always try to scam? Is it a game?
Hotwater:
You've obviously never been to the markets around the main train station in Guangzhou. There is one side street of money changers there.
I have used it a couple of times same person.The man was inside the bank it was very busy,he told us he had vip account so we went upstairs in B.O.C. i gave him English Pounds which had been sent by my parents,and he gave slightly higher rate.The money was moved from his account to mine he didn't actually give me any money.I just withdrew the money from my account.Only did it to save time.I think they sell money to God knows who.
Yes, I see it all the time and at almost all banks, but certainly the large branches.
I have never exchanged any money with these hawkers, because my friend - a
local resident - told me that one often gets fake bills.
I see it all the time. While it is not, in my opinion, totally legitimate (Chinese can not have foreign currency in their possesion), it is in some cases done inside the bank, in full view of bank workers and bank security, and no one complains. I will not do it on a street, with bank notes physically exchanging hands, because the risk of counterfit notes is too high, and once you touch yjeri money is yours.
In fact, I learned oi this at the suggestion of a BOC bank officer. When the rate of exchange was in the 5.9 range, I complained it was too low, and the officer called a lady standing right outside bank and even translated for me. They do not give you a lot extra, assume the bank rate is 6.37, they will offer 6.39.If you have large sums for exchange, may go a little higher, but again not by much.
I feel safe because first I am inside the bank. Second, the exchange is done thru a bank teller. They give the teller a passbook, I give the teller the dollars, she deposits them in their account. Then they give the teller another passbook, and transfer the Rmb from that account into mine. No chance of counterfit bills.
I asked one of them once how can they profit from this, His answer was cryptable, but I understood it. He more or less say "China many regulations, Chinese need dollars, Chinese buy from me with no problem". And I fully understood when the daughter of a close friend went to college in USA. Her father came to me and asked if he gave me Rmb here, will I give her daughter dollars in USA. He claimed too many forms, too many questions and documents needed for wire transfer. So, for 4 years I had a very nice exchange rate, no hassle with banks and wire transfers, and I am sorry it ended.
Nessquick:
Exactly same situation happened to me some years ago in Shanghai. I went to bank with 40k usd , needed rmb for goods payments. Refused by bank teller with " foreigner can not exchange that much" , but my few "stupid questions - why ? " soon some men came to us and bank teller explained to me that we can do that that way, as you described. I finally agreed and it went smooth, but my butt was very tightly closed all the time...
In guangzhou there are many like those. I do exchange my currency with them most of the time,never got problem or fake notes, they have system they stamp or sign evey note they give you, so if there is any fake you can later give them it back and ask for replacement, but never had to replace as never got fake note, mainly those 2 near xiaobei,lujinglu.
Lets say, chances of getting fake notes are 1 in 10.
Would you take that chance ?
Your Choice
